Government Sets 20% Critical Mineral Recycling Target by 2030: "Comprehensive Support for Investment and Tax Incentives"

The government will implement comprehensive support measures-including the creation of an industrial ecosystem, nurturing of companies, and rationalization of regulations-to raise the recycling rate of strategic critical minerals to 20% by 2030. This strategy aims to secure a stable supply of core raw materials for advanced industries such as electric vehicles and semiconductors, and to internalize supply chains that are currently highly dependent on overseas sources.

On October 31, Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, presided over the 6th Supply Chain Stabilization Committee at the Government Seoul Office. He stated, “Recycling of critical minerals is a practical solution for Korea, which has limited natural resources, to secure competitiveness and industrial sovereignty in advanced industries.” Koo emphasized, “By expanding the designation of recyclable resources, easing the burden of import guarantees, and providing support through allocated tariffs, we will reduce the costs and administrative burden on companies importing recycled raw materials.”

To establish the initial industrial ecosystem for critical mineral recycling, the government will introduce recycling functions within resource circulation clusters and promote demonstration projects that cover the full cycle from raw materials to materials to products. By strengthening connections with existing clusters in Pohang (batteries), Gumi (semiconductors), and Jeju (comprehensive), the government will provide integrated support for demonstration and commercialization, raw material analysis, certification, and equipment.

Companies located in these clusters will receive support for facilities and equipment, and will be given preferential incentives and extra points when participating in recycling support programs to encourage greater private sector participation. In addition, a cooperative system will be established among specialized institutions such as Korea Mine Rehabilitation and Mineral Resources Corporation, Korea Institute of Geoscience and Mineral Resources, Korea Environment Corporation, and Korea Institute of Industrial Technology to strengthen on-site support for technology development, workforce training, and regulatory approvals.

Efforts will also be made to stabilize the supply of raw materials. The government will gradually build an integrated database (DB) and early warning system (EWS) for the distribution and supply of recycled raw materials, focusing on the 10 strategic critical minerals (lithium, nickel, cobalt, manganese, graphite, and five types of rare earths) to manage real-time supply information. The government will analyze the generation and transaction status of waste batteries, e-waste (electronic waste), and spent catalysts generated domestically to improve the supply chain management system.

Securing overseas raw materials will also be supported. The government will assist private companies in building overseas raw material supply networks and, if necessary, consider joint procurement and purchasing. Additionally, it plans to provide low-cost storage space for recycled raw materials by utilizing six nationwide stockpiling facilities for recyclable resources in locations such as Anseong, Jeongeup, and Daegu.

Deputy Prime Minister Koo Yoon-chul Chairs the 6th Supply Chain Stabilization Committee

(Seoul=Yonhap News) Reporter Lee Jung-hoon = Koo Yoon-chul, Deputy Prime Minister and Minister of Economy and Finance, is presiding over the 6th Supply Chain Stabilization Committee held at the Government Seoul Office in Jongno-gu, Seoul on October 31, 2025. uwg806@yna.co.kr (End)

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Support for the development of the recycling industry will be strengthened. The government will establish a public-private “Critical Minerals Investment Council” to identify promising recycling projects and provide investment, loans, and guarantees through the Supply Chain Stabilization Fund. Small and medium-sized enterprises (SMEs) and mid-sized companies with limited financial capacity will be the main beneficiaries.

The public institution Korea Mine Rehabilitation and Mineral Resources Corporation will be designated as the dedicated agency for critical mineral recycling to mitigate investment risks and stimulate private investment. To this end, the 2026 budget includes a subsidy of 3.7 billion won for recycling facilities and equipment.

Support for technology development and demonstration will also be enhanced. The government will identify R&D projects for the development of technologies to recover valuable resources from waste, as well as for securing core technologies for preprocessing, separation, and refining throughout the full cycle. Through the “Circular Economy Regulatory Sandbox,” new technologies will be supported for demonstration and commercialization. For private sector demonstration projects such as rare earth recovery from large home appliances, the government plans to provide funding (up to 120 million won) and liability insurance.

In preparation for the European Union’s “Battery Regulation” (which will require the use of recycled materials from 2031), a system for stockpiling recycled critical minerals will be introduced. The government will establish a certification system for recycled materials and stockpile a certain amount to ensure initial market price competitiveness and support market access.

Tax support will also be expanded. Technologies essential for supply chain stabilization will be designated as national strategic technologies or new growth source technologies and will be eligible for tax credits and other tax benefits. The government will also seek to lower allocated tariffs on key raw materials and has left open the possibility of applying a 0% tariff, in line with Japan, the United States, and the European Union.

The government will promote the designation of major raw materials such as waste printed circuit boards (waste PCBs) and spent catalysts as recyclable resources. If they meet standards following verification of toxicity, economic feasibility, and environmental impact, they will be exempt from waste regulations (collection, transport, storage, processing, etc.).

In particular, waste PCBs are scheduled to be designated as recyclable resources next year based on this year’s regulatory sandbox demonstration results. In addition, if waste battery black powder and similar materials meet toxicity standards, they will be recognized as “products” and exempt from waste regulations.

Import-related regulations will also be eased. Through amendments to the Act on the Control of Transboundary Movements of Wastes, import guarantees for designated recyclable resources will be exempted, and the permit process will be simplified, extending the validity period from the current one year to three years. To enhance the expertise of import managers, a system for designating specialized positions and providing personnel incentives will also be introduced.

To strengthen the institutional foundation, the government will expand public-private governance and statistical infrastructure. The government will expand the operation of the public-private “Critical Minerals Recycling Forum” to support the identification of policy tasks, collection of regulatory and operational challenges, and matching of supply and demand companies. The Private Sector Recycling Expert Committee will be operated regularly to continuously identify policy and institutional improvement tasks, and the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, and Ministry of Environment, Climate and Energy will hold regular inter-ministerial meetings to monitor the implementation of follow-up measures.

This set of measures will be implemented sequentially starting next year. This year, the establishment of resource circulation clusters, improvement of the database (DB), launch of the Recycling Investment Council, and establishment of a recycled materials certification system are underway. From next year, the stockpiling system, improvements to the customs clearance system, and expansion of tax support will be fully implemented. From 2027 to 2030, institutional improvements such as the reorganization of the industrial classification system and development of statistical indicators will follow. A government official stated, “The critical minerals recycling industry is not simply about waste management but is a key means of securing strategic resources and a new growth industry. Through public-private cooperation, we will complete the internalization of supply chains based on resource circulation and strengthen the competitiveness of future advanced industries.”

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