The U.S. Department of State emphasized Korea's role in securing the stability of critical mineral supply chains and noted that it is closely monitoring the management dispute between Korea Zinc and Young Poong and MBK Partners.
According to industry sources on the 20th, the U.S. Department of State revealed this through an official response to concerns expressed by Zachary Nunn, a Republican House member classified as a close aide to former President Donald Trump, regarding the Korea Zinc situation on the 18th of last month.
The U.S. Department of State said, "We appreciate the emphasis on the importance of resolving issues related to the Korea Zinc situation to diversify critical mineral supply chains and respond to China's growing influence," and added, "As stated in Executive Order 14154 by President Trump, expanding the production and supply chain of critical minerals is a core policy for protecting the economies and national security of the United States and its allies, and it is a key issue for the administration and the Department of State."
The U.S. Department of State continued, "Korea is deeply aware of the need to protect key technologies for diversifying the supply chain of critical minerals and economic security as the chair country of the Critical Mineral Security Partnership (MSP)." It added, "Korea has actively participated since the founding of the MSP, having directly experienced economic retaliation and coercion from China."
The U.S. Department of State also stated, "Korea is participating in an early warning system for a trilateral supply chain with the U.S. and Japan and is playing a significant role in strengthening multilateral supply chain resilience. Korean corporations play a leading role in the critical mineral supply chain and are essential partners in responding to China's market dominance."
It also noted that the Korean government is closely monitoring the Korea Zinc situation and reviewing its potential impacts. The Ministry of Trade, Industry and Energy has designated Korea Zinc's refining technology as a national core technology, meaning government approval is required before proceeding with foreign mergers and acquisitions (M&A), foreign investment, joint ventures, or technology exports.
The U.S. Department of State stated, "Korea will position itself as a critical ally in diversifying supply chains, and the Department of State will continuously strengthen cooperation with Korea to protect the U.S. economy and national security." It added, "The U.S. must work closely with Korea to block China's influence and establish stable supply chains, continuing various efforts beyond MSP activities to prevent attempts by China to monopolize the supply chain."
Concerns regarding the Korea Zinc management dispute have been continuously expressed by U.S. politicians, including Zachary Nunn. Some U.S. lawmakers argue that as Young Poong and MBK Partners pursue management control of Korea Zinc, the Chinese control over critical minerals and resources is increasing, and the U.S. government must actively seek response measures.