S. KOREA-AUSTRALIA SIGNS MOU

[Anchor Lead]

South Korea and Australia have agreed to step up supply chain cooperation in key minerals. This is according to an MOU the two countries signed during President Moon Jae-in’s state visit.

[Pkg]

Rare earth elements are essential to the semiconductor industry. Lithium, nickel and cobalt are indispensable to producing secondary batteries for electric vehicles. They are key minerals required in high-tech sectors. Australia is one of the leading countries that own these materials. This is why South Korea has signed an MOU on related supply chain cooperation.

[Soundbite] Scott Morrison(Australian Prime Minister(Dec. 13))

Meeting with local business leaders, President Moon stressed the two countries’ competitiveness can be mutually beneficial.

[Soundbite] Moon Jae-in(President) : "Resource-rich Australia is emerging as a key player in the global supply chain. S. Korea also serves as another pillar in the global network thanks to its competitiveness in secondary batteries, EVs and chips."

45% of Korea’s total mineral imports at the moment come from Australia but most of it is coal and iron ore. Key minerals take up only a tiny percentage. The latest agreement is significant as Korea has secured Australia as an import channel of core mineral products.

[Soundbite] Simon Crean(Chair, S. Korea-Australia Business Council)

The recent urea water solution shortage has highlighted the importance of procuring stable and diversified supply chains. The presidential office said the MOU is a preemptive response to ensure stable supply of key minerals. President Moon is returning home after wrapping up his 4-day state visit to Australia.