South Korea's Dual Strategy for Critical Mineral Supply Chains
Analysis based on 9 articles · First reported Feb 05, 2026 · Last updated Feb 05, 2026
The market impact is generally positive for South Korea's high-tech industries, as efforts to secure critical mineral supply chains reduce the risk of disruptions. However, the ongoing reliance on China for rare earths, despite diversification efforts, highlights persistent vulnerabilities in global supply chains.
South Korea is pursuing a dual-track strategy to secure its critical mineral supply chains, particularly for rare earths essential to its semiconductor, electric-car battery, and petrochemical industries. The South Korea===Ministry of Trade, Industry and Resources announced plans to establish a hotline and joint committee with Chinese authorities to facilitate mineral imports, acknowledging China's dominance in rare earth processing. Simultaneously, South Korea has joined and will chair the US-led Forum on Resource Geostrategic Engagement (FORGE), a bloc aimed at diversifying critical mineral sourcing and reducing reliance on any single country. South Korea will designate 17 critical minerals for national security, enhance monitoring, and allocate 250 billion won ($172.35 million) to support local companies in developing overseas mines, cooperating with countries like Vietnam and Laos. This approach reflects South Korea's balancing act between maintaining pragmatic ties with China and aligning with US-led initiatives to strengthen supply chain resilience.
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