Focus on Overseas Resource Development Functions... Korea Resources Corporation Seeks New Head Recruitment

[Asia Economy Reporter Kim Bo-kyung] The government has officially launched an innovation task force (TF) to restore the diminished overseas resource development functions. In line with this, Korea Minerals Resources Corporation, which has had a vacant president position for over two years, has begun recruiting a new head. The Minerals Resources Corporation is a public enterprise primarily engaged in domestic and overseas resource development.

According to industry sources on the 4th, the Minerals Resources Corporation accepted applications for the president candidate position until the previous day (3rd). The term is three years, with the possibility of annual renewal based on job performance. The Minerals Resources Corporation Executive Recommendation Committee will recommend presidential candidates through document and interview evaluations, and the Minister of Trade, Industry and Energy, the competent authority, will make the final appointment.

During the Lee Myung-bak administration, the corporation fell into capital erosion starting in 2016 due to reckless overseas resource development, and it is currently reviewing workforce restructuring and overseas asset sales, including efforts to merge with the Mine Reclamation Corporation. During the merger process, then-President Kim Young-min was dismissed in May 2018 with six months remaining in his term. Since then, the corporation has maintained an acting president system. The government's merger plan faced local opposition, failed to pass the 20th National Assembly, and was discarded, but recently, Lee Jang-seop, a member of the Democratic Party of Korea, proposed the 'Korea Mining Corporation Act,' and the merger is being reconsidered.

Additionally, the Ministry of Trade, Industry and Energy officially launched the '2nd Overseas Resource Development Innovation TF' last month. The 2nd Innovation TF is an organization aimed at improving the overall structure of overseas resource development, including resource public enterprises such as the Minerals Resources Corporation, Korea National Oil Corporation, and Korea Gas Corporation. While the 1st Innovation TF, active two years ago, identified causes of resource development failures and proposed principles for public enterprise restructuring, the 2nd Innovation TF is expected to serve as a focal point for discussions on restoring resource development functions.

The TF consists of three subcommittees: ▲ Financial Verification ▲ Asset Rationalization ▲ Resource Ecosystem, and is authorized to operate for up to one year. Considering continuity of discussions, Professor Park Jung-gu of Seoul National University of Science and Technology, who chaired the 1st Innovation TF, was confirmed as the TF chairman. The TF comprises a total of 22 members, including 19 private members and 2 government members.

The TF plans to objectively reassess major overseas resource development projects and the financial status of public enterprises, and to inspect and supplement public enterprise restructuring to ensure it functions properly on the ground. It will also discuss the resource development promotion system. Chairman Park said, "At a time when public and private resource development is significantly contracted, various discussions are needed to reactivate overseas resource development functions. We will explore diverse measures to improve the financial status of public enterprises and the overall structure of resource development."