South Korea is launching a comprehensive strategy to reduce its dependence on China for critical minerals, officially activating a new government command center to manage resource security as geopolitical and supply chain risks intensify.
The Ministry of Trade, Industry and Energy announced Wednesday that policies under the recently enacted National Resource Security Act are now in full effect. The newly formed Resource Security Council, chaired by Industry Minister Kim Jeong-kwan and including vice ministers from key economic ministries, held its inaugural meeting to approve a slate of measures.
“Geopolitical risks for critical minerals are rising rapidly amid strategic competition between China and the United States,” Minister Kim stated during the meeting. “Through this council, we will mobilize all government capabilities to systematically strengthen resource security.”
The council will oversee three primary mechanisms: a real-time early warning system to monitor supply and prices of strategic resources; a mandated reporting system requiring designated private-sector suppliers and large consumers to immediately flag disruptions; and an expansion of government-backed overseas resource development projects and financing.
A core focus is rare earth elements, all 17 of which are now classified as critical minerals. South Korea, a major manufacturer of electric vehicles, semiconductors, and batteries, relies heavily on imported rare earths. The strategy includes short-term steps to improve supply chain visibility and increase state stockpiles, medium-term plans to diversify sources through partnerships with the U.S., Japan, Australia, Laos, and Malaysia, and long-term investments in domestic processing technology and recycling from electronic waste.
Stockpiling targets are being sharply increased. State reserves of critical minerals will be raised from 100 days’ worth of supply to 180 days. A new dual stockpile system for liquefied natural gas will require major direct importers to hold emergency reserves.
Separately, the cabinet approved the 5th National Oil Stockpiling Plan (2026-2030), which will increase national petroleum reserves from 101 million barrels to 102.6 million barrels by 2030. The plan also involves converting some heavy oil stockpiles to lighter crude and upgrading storage facility safety.
The moves reflect a broader global trend of nations recalibrating strategic supply chains, particularly for materials essential to clean energy, defense, and advanced technology, in response to heightened trade tensions and regional instability.
