I AM Lee Yeon and Lumiem Sign MOU for Rare Earth Distribution

Rumieum Secures Rare Earth Supply from China's Top 5 State-Owned Mining Enterprises

[Asia Economy Reporter Hyungsoo Park] IM Iyeoni announced on the 23rd that it has signed a strategic business agreement (MOU) with domestic rare earth business operator Lumium for the domestic and international distribution of rare earth elements.

IM Iyeoni will collaborate with Lumium to promote rare earth distribution business domestically and internationally, including China. Lumium receives rare earth supplies from five major state-owned Chinese mining companies: Northern Rare Earth, Okwang Rare Earth, Shenghua Resources, Xiamen Tungsten, and Zhongjin Lingnan Nonfemet.

Lumium is the largest rare earth supplier vendor in Korea by sales, directly sourcing rare earth powder from Chinese mines and exclusively distributing it domestically.

An IM Iyeoni official stated, "We plan to supply rare earths directly sourced from the five major Chinese state-owned enterprises to global semiconductor and display manufacturers," adding, "We will supply not only light rare earths, essential industrial materials such as yttrium, lanthanum, and cerium, but also medium rare earths, which are crucial for motors used in electric vehicles and renewable energy turbines."

IM Iyeoni has begun discussions with local companies aiming to supply rare earths to over 150 semiconductor companies in China. Beyond China, the company plans to expand into European and Asian markets such as Germany and Japan, exclusively distributing medium rare earths, which are difficult to supply and have high prices.

Due to high demand for expensive medium rare earths within China, IM Iyeoni expects annual sales exceeding 40 billion KRW through its rare earth business. Since local mining companies record about a 17% operating profit margin, the company anticipates an operating profit margin of 30% by selling processed rare earths. Additional businesses related to powder coating and parts cleaning for semiconductor and display companies that will receive rare earth supplies are also under discussion.

IM Iyeoni serves as a first-tier vendor for Samsung Group companies such as Samsung Electronics and Samsung Display, handling substrate assembly for OLED, mobile LCD, and LED. The company expects increased sales in its existing business units this year and is pursuing business diversification through new ventures.

An IM Iyeoni official said, "The performance planning business, which started in 2019, faced difficulties last year due to COVID-19," adding, "We are discussing the rescheduling of postponed performances, so the performance business is expected to normalize."