Mining Industry Development Act, Ruling Party's Unilateral Submission Moves to Agenda Adjustment Committee... Mineral Corporation at a Crossroads

'Korea Mining Corporation Act' Scheduled for Discussion at the Full Sanjawi Meeting on the 23rd
Opposition Criticizes "Surprise Submission"... Demands Linkage with Special Act on 폐특법

[Asia Economy Reporter Oh Ju-yeon] The "Korea Mining Corporation Act," which includes merging the Korea Resources Corporation, currently in a state of complete capital erosion, with the Korea Mine Reclamation Corporation to launch the "Korea Mine Reclamation and Resources Corporation," was unilaterally submitted on the 23rd at the ruling party's request but was referred to the agenda adjustment committee due to opposition from the opposition party.

While the ruling party insists on the urgent passage of the bill to prevent the bankruptcy of the debt-ridden Resources Corporation, the opposition party strongly opposed, arguing that it should be processed in conjunction with the amendment of the Act on Support for Development of Abandoned Mine Areas (the Abandoned Mine Special Act). They explained that if the merger with the Mine Reclamation Corporation, which was launched for the economic revival of abandoned mine areas, is to proceed, appropriate compensation must be provided accordingly.

At the plenary meeting of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee on the same day, Lee Jang-seop, a member of the Democratic Party, requested that the Mining Corporation Act be added to the agenda.

Lee said, "The Resources Corporation is currently suffering losses from overseas projects, and self-help efforts alone have reached their limit," adding, "It must also repay $500 million due in April, but it has lost its own capacity. If an unprecedented public institution default occurs, it will lead to a downgrade of other public enterprises' credit ratings and damage the nation's creditworthiness," emphasizing the urgency.

Democratic Party member Lee So-young also warned, "The repayment debt from January to May this year exceeds 1.3 trillion won, and there is absolutely no ability to repay it. The corporation has already exceeded its bond issuance limit," adding, "A 600 billion won debt is due this coming April, and an unprecedented public enterprise default could occur."

In the National Assembly, when the Resources Corporation fell into a state of complete capital erosion in 2016, a bill to increase capital was proposed from 2017, but it was rejected as the Democratic Party did not agree at the time. The government has been demanding a merger with the Mine Reclamation Corporation as an alternative since 2018.

However, Lee Cheol-gyu, the opposition party's secretary from the People Power Party, put a brake on the bill, saying, "It is taking away the livelihood rights of residents in abandoned mine areas to repay debts caused by government failures," and insisted that it should be processed in conjunction with the amendment to the Abandoned Mine Special Act. The amendment proposes abolishing the 10-year statute of limitations of the Abandoned Mine Special Act, which expires at the end of December 2025.

The government and ruling party agreed on the need for support for abandoned mine areas but drew a line, saying the two bills are separate issues.

Sung Yun-mo, Minister of Trade, Industry and Energy, expressed concern, saying, "We have been requesting the passage of the Mining Corporation Act for the past three years. If left unattended any longer, the Resources Corporation could go bankrupt," emphasizing, "The insolvency could spread, affecting all public enterprises and the nation's credit rating." He added, "Please make a decision so that we do not close the stable after losing the cow."

The ruling and opposition parties agreed to form an agenda adjustment committee that afternoon to discuss the bill. The agenda adjustment committee can review the agenda for up to 90 days, and the referred agenda is approved if two-thirds or more of the total members vote in favor.

This content was produced with the assistance of AI translation services.