Korea and Mongolia should cooperate to reduce ”dependence on China”

Mongolia is rich in minerals and other resources and is considered one of the world's 10 most resource-rich countries. Its land area is about seven times that of the Korean Peninsula and 16 times that of South Korea, making it the 19th largest in the world.
However, most of the resources harvested are exported to China because Mongolia lacks the processing technology. Therefore, they are converted into products through primary and secondary processing in China.
Some of the resources that were lost are now being re-imported to Mongolia. At the "Core Mineral Cooperation Plan" session of the 2nd Korea-Mongolia Future Strategy Forum held on the afternoon of the 27th,
The main topics discussed were awareness of the strange structure of the Korean economy and ways to cooperate between the two countries to overcome it.
"We are trying to secure a stable supply of resources through fixed-term contracts and stockpiles, but there is a limit to how much we can meet the rapidly increasing demand for semiconductors and secondary batteries," he said. "In particular, we are facing a shortage of lithium, manganese, and copper.
"There are problems with our crisis response capabilities, such as the fact that key minerals such as uranium are being processed in China and then imported to Korea," he said.
The head of the Cadastral Department of the Mongolian Mineral Resources and Petroleum Agency said, "The mineral industry accounts for 28 percent of Mongolia's GDP (gross domestic product) and 92 percent of all exports. Currently, resource exploration is taking place on 44 percent of the country's land area.
"Only the survey has been completed, and we hope to carry out various projects together with Korea in the remaining areas," said Jeong, a Korean official in charge of resource research in Mongolia.
Dr. Hosok of the Geoscience and Resources Research Institute said, "Korea relies on imports for 100% of its core minerals, and of that, about 90% is dependent on China. If we don't secure core minerals, we won't be able to develop the quaternary industry."
"Both South Korea and Mongolia need to reduce their dependence on China," he said.
In fact, Mongolia is also overly dependent on China for imports and exports, and has been affected by the COVID-19 outbreak.
The border between the two countries was closed off at the time, which caused considerable economic difficulties. Dr. Chung expressed his hope that "once the joint research between the two countries is completed, a substantial cooperation system will be established."