1. Reason for enactment

The purpose of the proposed Enforcement Rules is to provide the matters delegated by the Special Act on National Resources Security enacted to respond effectively to crises related to resources security and the matters necessary for its enforcement (Law No. 20196; enacted on June 02, 2024).

2. Main contents

a. Development of the Master Plan for Resource Security (Article 2 of the draft)

The Master Plan for National Resources Security (hereinafter referred to as the “Master Plan”) under Article 5 of the Special Act on National Resources Security (hereinafter referred to as the “Act”) shall cover 10 years.

b. Development and enforcement of the Resources Security Enforcement Plan (Article 3 of the draft)

1) The Resources Security Enforcement Plans provided under Article 5 (3) of the Act shall be developed and enforced every five years and linked to the Master Plan.

2) When considering making changes to the main contents of the Resources Security Enforcement Plan, the matter shall be deliberated by the Resources Security Council (hereinafter referred to as the “Council”) under Article 6 of the Act.

c. Organization and Operation of the Resources Security Council (Article 5 of the draft)

Pursuant to Article 6 (2) of the Act, the Council shall consist of thirteen vice-ministerial-level officials of the central government, including the Vice-Minister of Planning and Finance, the Vice-Minister of Science and ICT, and the Vice-Minister of Foreign Affairs.

d. Designation of dedicated entities (Article 7 of the draft)

The Korea National Petroleum Corporation, Korea Gas Corporation, Korea Offshore Mining Corporation, and Korea Hydro & Nuclear Power Corporation may be designated as dedicated resource security entities (hereinafter referred to as “dedicated entities”) pursuant to Article 7(1) of the Act.

e. Development and Operation of Integrated Information System (Article 10 of the draft)

1) The National Resource Security Integrated Information System under Article 8 (1) of the Act (hereinafter referred to as the “Integrated Information System”) may request supply and demand entities, including the relevant central government agencies, and research institutions related to resources security, to provide information on the current status and risk factors related to the composition of the supply chain for key resources involving major foreign governments and business companies.

2) The dedicated entities may be requested to compile information and provide it to the Integrated Information System.

f. Diagnosis and Assessment of National Resources Security (Article 11 of the draft)

1) National resource security shall be diagnosed and assessed pursuant to Article 10 (1) of the Act (hereinafter referred to as “resources security diagnosis and assessment”) in the year prior to the development of the Master Plan.

2) The results of the resources security diagnosis and assessment shall be reported to the Council, which in turn may request corrective or supplementary actions to the heads of the relevant agencies after deliberation of the results.

g. Inspection and Analysis of Supply Chain (Article 12 of the draft)

1) Based on Article 11 (1) of the Act, the Korea National Petroleum Corporation, Korea Gas Corporation, Korea Offshore Mining Corporation, Korea Hydro & Nuclear Corporation, and Korea Energy Agency, etc. may be required to inspect and analyze vulnerabilities in their respective supply chain and report the results.

2) The results of the resources security diagnosis and assessment shall be reported to the Council, which in turn may request corrective or supplementary actions to the heads of the relevant supply agencies after deliberation of the results.

h. Stockpiling (Article 16 of the draft)

The Korea Petroleum Corporation, Korea Gas Corporation, Korea Coal Corporation, Korea Hydro & Nuclear Power Corporation, Korea Offshore Mining Corporation, and Korea Energy Corporation, etc. are designated as supply entities and accordingly shall fulfill the stockpiling obligation based on Article 15 (1) of the Act.

i. Designation of Recycling Industry Clusters (Article 24 of the draft)

Pursuant to Article 18 (3) of the Act, the Minister of Trade, Industry and Energy may designate recycling industry clusters by: i) establishing a development plan for the cluster, ii) listening to the opinions of the competent city mayors or provincial governors, iii) consulting with the heads of the relevant central government agencies, and iv) deliberation by the Council.

j. Organization and Operation of the Resources Security Crisis Response Headquarters (Article 32 of the draft)

The head of the Resources Security Crisis Response Headquarters provided under Article 24 (1) of the Act may organize and operate a support organization composed of officials of the Ministry of Trade, Industry and Energy, officials and employees dispatched from the relevant central government agencies, and experts from the private sector.

k. Measures to Stabilize Supply and Demand (Article 37 of the draft)

The measures for stabilizing supply and demand pursuant to Article 30 (1) of the Act include restrictions on the use of key resources for specific purposes, restrictions on the use of key resources within a certain period of time, and joint use of the supply infrastructure.