Yoon Attends World Gas Conference... Emphasizes Need for Resource Development
"Energy Security Is Crucial... Must Restore Resource Development Ecosystem"
Moon Also Halts 'Resource Sales'... Temporarily Retains Ambatovy Mine
President Yoon Suk-yeol Delivers Congratulatory Speech at Daegu World Gas Conference(Daegu=Yonhap News) Reporter Ahn Jung-won = President Yoon Suk-yeol is delivering a congratulatory speech at the 2022 Daegu World Gas Conference (WGC) held at EXCO in Daegu on the 24th. 2022.5.24
jeong@yna.co.kr
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[Asia Economy Sejong=Reporter Lee Jun-hyung] President Yoon Suk-yeol has once again emphasized the necessity of overseas resource development. This comes from the judgment that the importance of resource security is increasing as the supply chain crisis accelerates due to geopolitical conflicts such as the Ukraine situation. There is also speculation that the Lee Myung-bak administration’s ‘resource diplomacy’ may be revived.
On the 24th, President Yoon attended the 28th World Gas Conference held in Daegu and expressed his stance on resource development. President Yoon said, “Recently, uncertainties in energy and raw material supply have increased, raising the importance of energy security,” adding, “The private sector should take the lead to revitalize overseas investment and restore the industrial ecosystem related to overseas resource development.” This is interpreted as a call to resume overseas resource development, which was labeled as a ‘deep-rooted evil’ during the Moon Jae-in administration.
President Yoon’s emphasis on resource development at the Gas Conference reflects that energy security has become more important than ever. In particular, natural gas has emerged as a ‘hot potato’ in resource security issues due to its price surge and unstable supply since the Ukraine crisis. Russia, the world’s largest natural gas producer, recently controlled gas exports as part of ‘resource weaponization,’ which also affected supply chain instability. This is why energy security became a major agenda at this conference.
President Yoon Seok-yeol Examining the Korea Gas Corporation Booth(Daegu=Yonhap News) Reporter Ahn Jung-won = On the 24th, President Yoon Seok-yeol attended the 2022 Daegu World Gas Conference (WGC) held at Daegu EXCO and is examining a model of the LNG-LH2 hybrid receiving terminal at the Korea Gas Corporation exhibition hall. 2022.5.24
jeong@yna.co.kr
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Following President Yoon’s remarks, the new government’s resource security strategy is expected to be fully launched. Before the inauguration of the Yoon Suk-yeol administration, the Presidential Transition Committee announced plans to activate overseas resource development centered on private companies. The idea is to stabilize the supply chain by increasing private companies’ overseas resource investments through tax and financial support. The Ministry of Trade, Industry and Energy, the main government agency, also intends to revive tax incentives such as tax reductions to restore resource development, which had been weakened under the previous administration.
The new government has also put a brake on the previous administration’s ‘resource divestment’ policy. The Moon Jae-in administration had recommended the disposal of overseas assets by Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and others for the sake of normalizing the management of resource public enterprises. There have been continuous criticisms that Korea alone was selling overseas resources amid the growing importance of supply chains.
Eventually, KOMIR temporarily suspended the sale process of the Ambatovy mine in Madagascar only last month, right after President Yoon’s election. Nickel and cobalt produced at the Ambatovy mine are key materials for batteries. The Ministry of Trade, Industry and Energy is also considering not selling other overseas mines owned by KOMIR, such as the Cobre copper mine in Panama.
Meanwhile, the Gas Conference is the largest international event in the industry, known as the ‘Gas Olympics.’ It is hosted by the International Gas Union (IGU), which accounts for 95% of global gas trade volume. In Asia, it was held in Daegu for the third time, following Tokyo, Japan (2003), and Kuala Lumpur, Malaysia (2012).
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