Korea-Japan business community calls for joint response to critical mineral supply chain buildup

[The Financial News] The Korea-Japan business community has joined forces to respond to the restructuring of supply chains for critical minerals and advanced industries.
On the 22nd, the Korea Economic Research Institute (KERI), under the Federation of Korean Industries (FKI), and the Japan Business Federation (Keidanren) Research Institute jointly held the 'Japan-Korea Joint Economic Seminar in the Era of Multiple Crises' in the international conference room of Keidanren Kaikan in Tokyo, Japan.
In his keynote speech, Minister for Trade Yeo Han-koo said, "Korea and Japan are facing common challenges and uncertainties." He added, "With instability in the Middle East continuing and U.S.-China strategic competition intensifying, what is needed now is flexible solidarity among countries that share values and interests." Yeo also said, "For cooperation in supply chains, it is important to build collaboration based on multilateral platforms, such as the Korea-Japan Supply Chain Partnership Arrangement (SCPA), which was signed in March."
The two countries have focused on strengthening cooperation in advanced industries such as semiconductors and stabilizing supply chains for rare earths and other materials. Korea is promoting the Supply Chain 3 Acts and Comprehensive Rare Earth Measures, while Japan is carrying out rare earth exploration and development at home based on the Act on the Promotion of Ensuring National Security Through Integrated Implementation of Economic Measures.
Yeo said, "In terms of energy security, we need to strengthen mutual stockpiling and swap cooperation in oil and gas to build a system that can respond quickly together when supply disruptions occur." He noted that Korea has the world's largest storage infrastructure, while Japan has surplus volumes beyond domestic demand, raising expectations for synergy.
In a presentation on the topic, Sungbae An, vice president of the Korea Institute for International Economic Policy (KIEP), said, "Korea and Japan need to expand joint projects such as mine development and infrastructure investment in third countries." He pointed out that the two countries already have experience cooperating on resource development projects involving nickel, copper, and iron ore, and said that this should be expanded further. An added, "It is an urgent task for Korea and Japan to reduce dependence on specific countries for key minerals such as lithium, graphite, and rare earths." In the critical minerals sector, dependence on certain countries remains high in the refining and processing stages, leaving both countries exposed to supply chain risks. As a result, the need to diversify supply chains and secure stability is growing stronger, especially in strategic industries such as critical minerals, semiconductors, and energy.
Arata Kuno, a professor at Ritsumeikan Asia Pacific University, said, "The most important area for Korea and Japan to focus on together is supply chain stabilization." He added, "The key task is to reduce dependence on specific countries in strategic industries such as semiconductors, batteries, and critical minerals, and to build a system that allows joint responses in times of crisis." Kuno stressed that the two countries must urgently advance practical cooperation mechanisms such as information sharing, joint procurement, and production cooperation.
Meanwhile, Jeongcheol, head of KERI, said, "Based on the discussions at this seminar, KERI plans to prepare a Policy Recommendation Report in May."
[email protected] Jo Eun-hyo Reporter