South Korea’s initiative to bolster security in critical mineral resources faces significant challenges due to an escalating workforce shortage. Industry officials and academics have reported that mining companies are struggling to recruit sufficient workers, just as government-supported training programs are set to conclude.
According to the Korea Mine Rehabilitation and Mining Industry Corporation, a project aimed at introducing a foreign workforce under the employment permit system has only yielded six hires this year, representing a mere 3% of its target of 200 workers. This figure marks a decline, as it is six hires fewer than last year and reflects just 4.5% of the combined target over the past two years. The project was launched last year in response to worsening labor shortages in the mining sector.
Preliminary findings from Statistics Korea’s 2024 Mining and Manufacturing Survey indicate that employment in the mining sector decreased by 8.7% compared to the previous year. Industry representatives cite various constraints in efforts to utilize foreign workers. One official noted that allowing foreign workers to undertake specific support tasks related to explosives could alleviate labor shortages, but such duties are currently prohibited due to past safety incidents involving explosives at tunnel construction sites.
Additionally, companies have expressed concerns about communication barriers, cultural differences, and skill gaps among potential foreign workers. The impending conclusion of domestic workforce development programs next year is raising alarms regarding the future supply of engineers and technicians in the industry.
The report highlights that resource development training initiatives have struggled since the Asian financial crisis, and setbacks in previous resource development efforts have compounded the issue. A government workforce training initiative, which operated from 2009 to 2019 with a total investment of 87.5 billion won (approximately $66 million), was suspended for two years and subsequently resumed with reduced funding. This program is now set to end, further jeopardizing the pipeline of skilled labor.
A mining industry official indicated that a request for new project funding through the Ministry of Trade, Industry and Energy was not approved by the Finance Ministry. While training could potentially continue as an initiative under the Education Ministry if regional demand arises, no local governments currently have plans for workforce development in this area.
Universities that previously merged or closed their resource engineering departments are also facing additional pressures as support programs expire. For instance, Kangwon National University is set to admit only two students to its resource engineering major this year. Kim Jin-soo, a professor at Hanyang University, remarked that education programs in resource development and mining have largely collapsed, despite attempts to maintain training through industry groups and government-backed projects.
The report suggests that the shortage of skilled workers could lead to increased reliance on foreign technology and personnel, undermining domestic knowledge accumulation. This trend may complicate efforts to secure essential materials for industries such as semiconductors. Enrollment figures corroborate this trend, revealing that 13 South Korean universities with resource engineering and geology-related departments had a total of 592 students this year, down 106 from the previous year. Notably, enrollment in resource engineering has fallen to 422 students, dipping below 500 for the first time in twelve years.
In response to these challenges, the South Korean government has enacted a special act on national resource security this year and added critical minerals to the National Growth Fund support list. Experts assert that workforce development must be integrated into a broader industrial ecosystem. They advocate for creating a cycle where government and industry collaborate to identify demand, expand clusters, and train workers accordingly.
Nam Kwang-soo, a professor at Sangji University, emphasized that overseas resource development necessitates personnel equipped with field experience and specialized skills. He called upon the government to take a proactive role in cultivating a robust talent pipeline to ensure the sustainability of South Korea’s critical mineral resources sector.
