South Korea urged to rethink security in critical minerals race

June 17 (Asia Today) -- South Korean companies must redesign their supply chain strategies around national and economic security rather than cost alone as the United States and China intensify their competition over critical minerals, an economist said Wednesday.

The Korea Management Innovation Small and Medium Business Association held its 149th Good Morning CEO Learning Forum at the Ambassador Seoul Pullman Hotel in central Seoul.

Kim Myung-jin, chairman of the association, said the organization had recently been selected to oversee a 17.1 billion won ($11.3 million) smart manufacturing support program for small manufacturers.

Kim said the association's overall budget had expanded to 55.2 billion won ($36.5 million), allowing it to strengthen growth programs, industry-academic cooperation and support for overseas expansion.

Park Jung-ho, an economics professor at Myongji University, discussed the second Trump administration's resource security strategy, China's fiscal challenges and changes in employment driven by artificial intelligence.

"The second Trump administration is pursuing a bloc-based supply chain strategy founded on a 'Monroe Doctrine 2.0' that seeks to exclude Chinese and Russian control of resources in the Western Hemisphere," Park said.

Park said the United States was pursuing a critical minerals stockpiling initiative known as Project Vault, which he said was valued at about $12 billion.

He said the United States was building its resource strategy around three regional pillars.

The first involves Greenland, where Washington is seeking access to large deposits of rare earth elements while also strengthening its strategic position along emerging Arctic shipping routes, he said.

The second centers on expanding refining and processing capacity within North America to reduce dependence on overseas suppliers and reinforce the industrial foundation of the U.S. defense sector.

The third involves separate agreements with resource-rich countries in Latin America, including Brazil and Argentina, to secure supplies of lithium, nickel and other minerals needed for batteries and advanced industries, Park said.

China, which has long dominated many mineral processing supply chains, is confronting growing economic constraints, he said.

Park pointed to the country's prolonged property downturn, slowing economic growth and a fiscal deficit equivalent to about 4% of gross domestic product.

He also described vulnerabilities in China's energy supply structure.

"Chinese state-owned companies face a dilemma because they cannot openly handle sanctioned crude without risking U.S. penalties," Park said.

As a result, independent refiners concentrated in Shandong province, commonly known as teapot refineries, have become major processors of Iranian crude, he said.

Park said the arrangement gives Beijing continued access to Iranian oil but also exposes smaller refiners to sanctions, volatile prices and tightening profit margins.

He also warned that the AI revolution would accelerate disruption in white-collar employment.

Park said the AI inference market could grow 23-fold by 2030, while restructuring at major technology companies could place a growing number of office-based jobs at risk of automation.

The transition from oil-centered energy security to competition over critical minerals means South Korean companies can no longer make supply decisions solely on the basis of price, Park said.

He called for companies and policymakers to redesign procurement, stockpiling and overseas investment strategies around supply resilience and economic security.

-- Reported by Asia Today; translated by UPI

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This story was originally published June 17, 2026 at 3:51 PM.