Gov't to ease public sector limits as part of rare earth supply chain plan
Published: 05 Feb. 2026, 18:56
![A mining truck operates in the Huaneng Yimin open-pit coal mine in Hulunbuir in northern China's Inner Mongolia province China on Sept. 15, 2025. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/05/0ce14c87-5f80-426d-8b82-ac7040847f87.jpg)
A mining truck operates in the Huaneng Yimin open-pit coal mine in Hulunbuir in northern China's Inner Mongolia province China on Sept. 15, 2025. [AP/YONHAP]
The government has decided to ease restrictions on public sector participation in overseas resource development, in a bid to strengthen supply chains for rare earths and other critical minerals after years of limits following failed projects under the Lee Myung-bak administration.
The Ministry of Trade, Industry and Resources on Thursday announced a comprehensive plan on the rare earth supply chain that covers every stage, from mining raw materials to processing into usable forms and manufacturing finished products.
“National competitiveness depends on industrial resource security, and stable rare earth supply chains require close cooperation between the public and private sectors," Trade Minister Kim Jung-kwan said. “The government will concentrate its policy efforts on building a foundation across the rare earth supply chain."
To reduce short-term supply risks, the government plans to strengthen trade cooperation with China, which accounts for 60 to 70 percent of global rare earth production, while managing trade risks such as export controls.
Over the medium to long term, the government plans to diversify supply chains.
The government will form a team that brings together companies and public entities to secure access to key mineral mines overseas. Resource development requires consultation with other governments and carries a high risk of failure, and officials said the government’s involvement is intended to reduce such risks.
![A sample of monazite, a mineral used in the rare earth industry to extract elements such as cerium, lanthanum and neodymium, is displayed next to a magnifying glass at the Geological Museum of China in Beijing on Oct. 14, 2025. [REUTERS/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/05/1656c2eb-3591-41bf-b174-fa8a78ec525a.jpg)
A sample of monazite, a mineral used in the rare earth industry to extract elements such as cerium, lanthanum and neodymium, is displayed next to a magnifying glass at the Geological Museum of China in Beijing on Oct. 14, 2025. [REUTERS/YONHAP]
Japan is also pursuing resource security through its public organization, Japan Oil, Gas and Metals National Corporation.
Korea previously engaged in overseas resource development under the Lee Myung-bak administration, but repeated setbacks left public sector activity effectively stalled.
The Korea Resources Corporation, which once oversaw mineral development, merged in 2021 with the Korea Mine Reclamation Corporation to become the Korea Mine Rehabilitation and Mineral Resources Corporation (Komir). During that process, the law barred Komir from undertaking new overseas resource development projects.
The corporation’s current main task is selling existing mine assets to normalize its operations, and critics have said this has left a void in public sector involvement in mineral development.
To address these issues, the government plans to consult with the National Assembly to remove the prohibition on overseas resource development and increase Komir's capital.
The corporation has requested an increase from the current 3 trillion won ($2 billion) to 5 trillion won.
“There is growing consensus within the government and the National Assembly that critical minerals will play a more central role than oil and gas in resource security,” a Trade Ministry official said. “Under this consensus, we plan to adjust and strengthen the role of Komir."
Despite the policy shift, concerns remain over a return to public sector overseas resource development. Such projects require substantial financial commitments, while Komir already faces financial strain and lingering questions about its technical capacity.
![Workers dig at a rare earth mine in Baiyunebo mining district of Baotou in north China's Inner Mongolia Autonomous Region in this July 6, 2010, file photo. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/02/05/920681b5-9360-4df9-81f1-9c40b67b2d90.jpg)
Workers dig at a rare earth mine in Baiyunebo mining district of Baotou in north China's Inner Mongolia Autonomous Region in this July 6, 2010, file photo. [AP/YONHAP]
“We plan to overhaul personnel and systems and institutionalize safeguards that allow for more rigorous pre-investment reviews,” a Trade Ministry official said.
The government also said future resource development will be led by the private sector, with the public sector in a supporting role rather than driving projects.
The government will also work to build domestic production capacity and turn discarded materials into usable resources.
To reduce dependence on China, which dominates rare earth separation and refining technology, the government plans to provide investment subsidies, production support and assistance in securing sales channels for domestic companies.
Officials say the goal is to raise domestic production levels for rare earth processing, similar to how Korea increased local production of semiconductor materials, parts and equipment that once relied heavily on Japan. The government aims to build an independent industrial ecosystem for rare earths.
The plan also calls for recovering discarded magnets from recycled large home appliances, supporting investment in recycling facilities and funding research and development on technologies that replace, reduce or recycle rare earth materials.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY AHN HYO-SEONG [[email protected]]
with the Korea JoongAng Daily
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