The study examined the definition of rare metal, its kind, its use, its characteristic and policies of industrialized countries on rare metal resources, so-called strategic resources whose value and usefulness is ever increasing as indispensible raw m...
The study examined the definition of rare metal, its kind, its use, its characteristic and policies of industrialized countries on rare metal resources, so-called strategic resources whose value and usefulness is ever increasing as indispensible raw materials in the field of knowledge-intensive high-tech industries. The high-tech industry is expected to lead our economic society in the future.
The analysis of situations and policies of Korea related to these metals helped drawing out following problems.
First, unstable supply exists because of its uneven and oligopolistic market distribution mainly due to slow technological innovation.
Second, double jeopardy is likely because of the shortage of domestic resources and technological backwardness which increase the dependence on fabricating materials produced by advanced countries and the possible unstable supply.
Third, a projected production is limited because of sluggish technological development as most rare metal resources are tapped as by-products.
Fourth, the development of its substitutes and the recovery of scraps are difficult because of low level of technology. Terefore, to secure the stable supply of rare metal resources, it is required to strengthen economic cooperations and resource diplomacy with such countries as possess these resources. In a long term, it is also necessary to utilize various ways of supply such as development import, long term supply contract, and joint venture.
To eliminate the possibility of temporary stop of supply because of local war, economic instability of exporting countries, labor-management dispute, contract cancellation or delay of transportation, it is required to strengthen resource stock-piling system concerning rare metals and pursue the following measures.
First, collection of basic informations on these metals and its arrangement must precede research and development of policies.
Second, existing research bodies such as Korea Mining Promotion Corporation or Korea Institute of Energy and Resource should be commissioned to train specialists on various rare metals and encourage active research activities because long term investment can not be expected from private enterprises.
Third, institutional arrangements such as special funds for science and technology are required for financial assistance and distribution program.
Fourth, financial and tax support as part of national policy must follow because technological development makes increase of demand and import substitute possible.
Fifth, incentives must be given in terms of financial support, taxation and price to benefit businesses for stock-piling cheap raw materials. Domestic commodity exchange is required to set up to eliminate flaws found in the present stock-piling system and expand the stock-piling of private businesses.
In conclusion, exploitation activities of domestic metal resources must be pursued incessantly and positively.