Industry Minister Kim Jung-kwan said at a press briefing Saturday that "we need to engage in self-reflection on why we failed to properly build a resource security network," adding that "we must move to prepare measures from a long-term perspective." He also noted that while the importance of securing resources was highlighted when shortage issues arose, such as during the Middle East war, the mood changed once the conflict moved toward an end. "The chronic problem with resource security policy is the single-year budget," Kim said, emphasizing forward-looking policymaking and budget support.
Major rival countries are now waging a silent war to secure resources. Failing to secure not only energy such as crude oil and natural gas, but also mineral resources like rare earths, nickel, manganese, and aluminum, leaves survival in the era of the great artificial intelligence (AI) transformation in doubt. When China retaliated by cutting off rare earth supplies during the 2010 Senkaku Islands dispute (known in China as the Diaoyu Islands), Japan consistently pursued de-Chinaization of rare earths across multiple administrations. As a result, China's share of Japan's rare earth dependence, which exceeded 90% in 2010, fell to the 50% range, and government-led commercialization of technology reduced rare earth consumption by more than 40%. Early next year, Japan reportedly will begin producing rare earths jointly with France.
It is a self-evident reality that the weaponization of resources and minerals has become a constant amid the U.S.-China hegemony competition and intensifying trade friction, and that the fallout could strike Korea at any time. Although the U.S. and Chinese leaders held a summit last month and agreed on trade cooperation, China recently imposed sanctions on U.S. rare earth companies. With the fragmentation of U.S.-China supply chains, it is a precarious situation in which Korea's entire economy could be shocked if countries incorporated into China's "red supply chain" restrict resource exports to Korea.
In this regard, the "rubber-band" resource policy that swings between hot and cold depending on the administration must be corrected. Overseas resource development pursued under the Lee Myung-bak government was politically branded as "deep-rooted evil" under the Moon Jae-in government, and related projects were either scuttled or sold at bargain prices. With import dependence on energy and 33 critical minerals reaching 90% and 99% respectively, Korea can no longer afford to play a "self-defeating move" on resources. Taking the Moon Jae-in government's indelible blunder as a cautionary lesson, the government must hurry to pursue a multidimensional plan that includes expanding the resource budget, supporting resource companies, increasing stockpiles of critical minerals, and strengthening technological self-reliance. Now, as Minister Kim pointed out, is the time to meticulously map out a long-term strategy for resources, minerals, and energy.
