The South Korean government is set to implement a circular economy initiative aimed at repurposing industrial waste from key sectors such as electronics, semiconductors, steel, and food into usable raw materials.
On June 19, the Ministry of Climate, Energy, and Environment signed a memorandum of understanding at the Posco Center in Gangnam, Seoul, with 16 companies and organizations, including LG Electronics, Posco, Hyundai Steel, and Samyang Foods, along with the Korea Environmental Corporation.
This marks the first instance of the government designating leading companies and industrial complexes in the circular economy. The initiative targets sectors like electronics, semiconductor materials, steel, and food, focusing on converting waste and by-products into high-value recycled materials.
The circular economy aims to replace imported raw materials with recycled materials sourced from domestic waste. As competition for securing critical minerals and raw materials intensifies, this initiative seeks to utilize waste as industrial raw materials within the country. It is emerging as a strategic approach to stabilize supply chains and reduce carbon emissions simultaneously.
In the electronics sector, LG Electronics will take the lead. The company, in collaboration with LX Pantos, will establish a system for recovering and managing waste refrigerants from air conditioners and refrigerators. Through the Chilseo Recycling Center and Owon R2 Tech, LG will promote the production of recycled refrigerants. Gyeongnam Techno Park will also participate in creating a standard system for recovering waste refrigerants in the Gyeongnam industrial complex.
Additionally, a restoration and reuse system will be tested to allow electronic products that were previously discarded due to defects or returns to be refurbished and reintroduced into the market.
In the semiconductor materials sector, the recycling of the rare metal hafnium has been identified as a key task. PKC and Adeka Korea will produce hafnium from by-products of semiconductor manufacturing processes and convert it into precursors for reuse in semiconductor processes. Hafnium is a rare metal used in semiconductor insulators, with limited global production.
The semiconductor industry is increasingly reliant on rare metals due to advancements in miniaturization and material diversification. If materials that depend on specific countries or limited supply chains can be recovered and recycled domestically, it could reduce vulnerabilities in the semiconductor supply chain.
In the steel sector, Posco and Hyundai Steel will establish collaborative frameworks. Posco will work with new companies, Serim Sangun, and Jinpyeong to recover valuable components such as iron and carbon from process dust and slag, processing them into high-quality recycled materials. Hyundai Steel will collaborate with Heungjin Development and Seum Industrial Development to share by-products like steel slag and promote the production of high-value products such as slag asphalt and concrete aggregates.
The steel industry is known for its high energy consumption and carbon emissions, making the expansion of by-product recycling crucial for both carbon neutrality and cost reduction. The European Union's Carbon Border Adjustment Mechanism (CBAM) is intensifying the link between the carbon competitiveness of steel products and export competitiveness.
In the food sector, Samyang Foods will partner with Gangwon Bioenergy to convert by-products that were previously incinerated into biogas. The company is also working to enhance the recyclability of food packaging by reducing aluminum usage and transitioning to single-material packaging. This initiative aims to align with global environmental standards as K-food exports expand.
The Ministry of Climate, Energy, and Environment plans to establish detailed management strategies for the selected companies from 2026 to 2030, focusing on improving waste regulations, providing exemptions for practical applications, supporting process improvements and equipment, and identifying research and development projects. Minister Kim Sung-hwan stated, "In the face of intensifying competition for resource supply chains, the transition to a circular economy is inevitable. I hope that leading companies and industrial complexes will serve as milestones in driving change across the entire industrial ecosystem."
* This article has been translated by AI.
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