Korea to push for 'circular economy' of major resources

Finance Minister Choo Kyung-ho speaks during a meeting with economy-related ministers in central Seoul on Wednesday. [MINISTRY OF ECONOMY AND FINANCE]

Korea will push for a "circular economy" of key resources, focusing on recycling in major industries, such as steel, petrochemicals and batteries, with the goal of cutting carbon emissions, the government said Wednesday.

Under the drive named the "CE 9" project, the government will focus on seeking sustainable growth in nine segments: petrochemicals, steel, non-ferrous metals, batteries, electronics, fabrics, cars, machinery and cement, according to the Ministry of Trade, Industry and Energy.

The new project focuses on efficient resource utilization and recycling, in contrast to the traditional "linear economy" approach of collecting, consuming and disposing of raw materials.

"With geopolitical risks, such as the ongoing Russia-Ukraine war and the tightening export controls by major suppliers, the global competition to secure resources has been intensifying, also due to uncertainties in supply and prices," the ministry said in a report.

"As Korea is an export-oriented economy with a small domestic market, it needs to overcome its limits in securing used resources," it added.

For example, Korea will support the development of technologies to gather lithium and nickel from used electric vehicle batteries.

The government will also support efforts to produce oil by utilizing plastic waste and revamping related policies.

The ministry added such efforts are crucial, considering the global market for the circular economy is anticipated to reach $4.5 trillion by 2030.

"The circular economy, which focuses on waste recycling, has emerged as a crucial method for achieving carbon neutrality and a new model of growth," Finance Minister Choo Kyung-ho said during a meeting with economy-related ministers.

"To this end, the government will make efforts to expedite the implementation of the circular economy in Korean industries and harness it as a new growth engine," Choo added.

The government said it aims to foster stronger technology cooperation between conglomerates and small businesses and promote their joint investment in processing facilities to build the supply chain of recycled resources.

The government also announced plans Wednesday to attract a combined private investment of 5 trillion won (US$3.88 billion) through 2027 in the agricultural sector to beef up its competitiveness.

Yonhap