November 21, 2024

• 

Chung Joo-hwan, a secretary at South Korea's Ministry of Trade, Industry and Energy, speaks at the Korea-Mongolia Vision Forum held at Novotel in Ulaanbaatar, Mongolia, on August 27. (Park Hae-mook/The Korea Herald)

South Korea and Mongolia need to strengthen cooperation on the supply of critical minerals to lessen their trade reliance on China, officials and experts from the two countries said at the Korea-Mongolia Vision Forum in Ulaanbaatar, Mongolia.

Co-hosted by Herald Media Group and the Ahnsei Foundation, the forum was held at the Novotel in the Mongolian capital on Aug. 27.

During the session titled “Core Minerals Cooperation Plan," participants discussed ways for the two countries to work together in procuring resources, rare metals and other critical minerals.

“South Korea is making efforts to secure resources through long-term contracts and stockpiling, but there are limits in responding to the surging demand for semiconductors and rechargeable batteries,” said Chung Joo-hwan, an official with Korea's Ministry of Trade, Industry and Energy.

“The fact that key materials such as lithium, manganese and cobalt are imported to Korea after being processed in China could challenge Korea’s ability to respond to potential crises.”

In November last year, the two countries established the Korea-Mongolia Rare Metals Research Center as part of Seoul’s official development assistance to Ulaanbaatar. Chung said the center will help to "stabilize the supply chain of key minerals" between the two countries.

The Mongolian side suggested joint exploration of resources, tapping into Mongolia’s unexplored territories.

Tsegtsi Tsereniam, a senior official of the Cadastre Department of the Minerals and Petroleum Department of the Ministry of Mining and Heavy Industry of Mongolia, said the mineral industry accounts for 28 percent of Mongolia’s gross domestic product and 92 percent of its total exports. However, only 44 percent of the country’s territory has been explored for resources. The official added that he hopes the two countries can conduct projects in the remaining areas.

Jeon Ho-seok, a principal researcher at the Korea Institute of Geoscience and Mineral Resources, pointed out that South Korea relies 100 percent on imports for critical minerals and about 90 percent of those come from China.

“Without securing key minerals, it would be impossible for South Korea to lead the Fourth Industrial Revolution,” he said, stressing that both Korea and Mongolia need to reduce their dependency on China.

In the following session on “Future Energy Cooperation Plans,” officials and scholars discussed ways to resolve Mongolia’s chronic power shortages, while also transitioning to green energy.

Ganbaatar Enkhtuvshin, head of the Strategy and Planning Department of Mongolia’s Energy Ministry, said the country is seeking foreign investment for its energy sector, noting that the domestic budget alone is insufficient for infrastructure investment. He shared that the country is constructing a hydropower plant with a loan from China and also plans to build heating plants across 10 regions. He expressed hope for cooperation with Korea.

Professor Jung Tae-yong of Yonsei University noted that "policy, money, and technology must all go hand in hand" to achieve carbon neutrality. “Private sector investment is far more important than public funds,” he emphasized.

By Ahn Sung-mi (sahn@heraldcorp.com)