A tungsten mine in Yeongwol, Gangwon Province, which was closed 30 years ago due to competition from cheaper Chinese products, is set to resume operations next year. The Sangdong Mine, one of the world’s largest, boasts high-quality tungsten with reserves estimated to be 7,200 times South Korea’s annual import volume. Despite its potential, it was shut down due to the lower prices of Chinese tungsten. However, with the Fourth Industrial Revolution increasing demand for tungsten in technologies like artificial intelligence (AI) and autonomous vehicles, global tungsten prices have surged. As forecasts suggest that China’s tungsten reserves, which account for 80% of the global market, may soon be depleted, the Canadian firm that owns the Sangdong Mine has decided to restart mining. The company plans to invest 100 billion won in building a processing plant in Yeongwol and exporting the tungsten to the United States.The reopening of the Sangdong Mine after 30 years highlights the importance of long-term investment and ownership in resource development. The mine’s current economic value is estimated at around 60 trillion won. Despite being resource-poor, South Korea’s limited resources are predominantly in foreign hands. Originally owned by the state-run Korea Tungsten, the mine was sold to the private sector and later acquired by the Canadian firm Almonty following the previous owner’s bankruptcy.South Korea relies on imports for 95% of its mineral resources, making it the most resource-deficient OECD member. Efforts to develop overseas resources began under the Kim Dae-jung administration in 2001 and continued through the Roh Moo-hyun and Lee Myung-bak administrations. However, the Park Geun-hye and Moon Jae-in governments criticized Lee’s resource diplomacy as “corrupt practices,” leading to audits, investigations, and the acquittal of executives. While the heads of state-owned enterbt es were tried and acquitted, the process led to tragic outcomes, including the suicide of an innocent executive. The Moon administration, however, continued to scrutinize overseas resource development projects and sold acquired foreign mineral assets at low prices, driven by a fixation on political logic, which led to a loss of rationality.Domestic political strife has caused a decade-long setback in overseas resource development, while global competition for resources has intensified. Developing these resources can take decades, from exploration to production. The potential rewards are substantial, but the risks of failure are also high. It raises the question of which future government will have the foresight and willingness to tackle the long-term challenges and risks of overseas resource investment, given how easily such efforts can be undermined by political disputes.
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