Ministry of Trade Industry and Resources

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presided over the 6th Supply Chain Stabilization Committee Meeting at the Government Complex Seoul on Friday, October 31, 2025. The meeting reviewed recent developments in economic security and discussed (1) measures to stabilize rare earth supply chains, (2) first-year achievements and improvement measures of the Supply Chain Stabilization Fund, and (3) strategies to promote recycling of critical minerals.

Amid growing supply uncertainties surrounding rare earth elements due to China’s strengthened export controls, the government launched an inter-ministerial task force on rare earth supply chains (established on October 16, 2025) to prevent adverse impacts on Korean companies and operates a Rare Earth Supply Response Center to support supply stability. To strengthen crisis response capabilities in case of supply disruptions, the government will expand investment and financing for overseas resource development, promote technologies that reduce reliance on rare earth materials and the recycling of rare earth permanent magnets, and increase public stockpiling.

Furthermore, the government will actively support critical mineral recycling. Aiming to achieve a 20 percent recycling rate for ten strategic critical minerals by 2030, the government has been operating a joint task force to build the industrial ecosystem and streamline related regulations. The new measures will shift the perception of recycled raw materials from “waste” to “resources” through institutional reforms. Expanding the scope of recyclable resource designation, easing import-guarantee requirements, and providing tariff relief are expected to tangibly reduce costs and administrative burdens for companies importing recycled raw materials. The government will also promote investment and financing through the Supply Chain Stabilization Fund to foster the recycling industry and leading firms, while strengthening fiscal support for facilities, equipment, R&D, and demonstration projects. Regular inter-ministerial meetings on critical mineral recycling will continue to explore policy and support improvements.

Marking the first anniversary of the Supply Chain Stabilization Fund, the government is reviewing its performance and exploring ways to enhance its effectiveness. To increase the fund’s proactivity and efficiency, the government will establish a KRW 250 billion Critical Minerals and Energy Supply Chain Stabilization Fund to boost direct and indirect investments and introduce special loan programs for small and mid-sized enterprises (SMEs). It will also establish a differentiated support system based on supply chain criticality and contributions to stabilization, while strengthening coordination with other policy finance institutions such as the Korea Development Bank.