Overseas resource investment hits record high in 2008

By Lee Joon-seung
SEOUL, Feb. 26 (Yonhap) -- South Korean investments in overseas resource
development surged to a record high in 2008 as local companies scrambled to
ensure a steady supply of raw materials, the government said Thursday.
Local companies invested a combined US$1.88 billion in overseas projects to
explore mineral resources last year, up sharply from $670 million the previous
year, according to the Ministry of Knowledge Economy.
"The surge reflects local companies' increased efforts to secure a stable supply
of resources amid steady gains in prices for coal, iron ore and copper," a
ministry official said.
According to the ministry, private companies accounted for 88.2 percent of the
total investment, or $1.66 billion. Investments in more expensive operational
mines reached $1.25 billion, a 4.7-fold increase from 2007.
Overseas mines controlled by South Korean companies produce iron ore, copper,
bituminous coal, zinc, nickel and uraniumfour, key minerals that amounted to 23.1
percent of local demand last year.
The ministry said local companies' investments in overseas resource development
is expected to reach $2.05 billion this year, with the self-sufficiency level of
the six major minerals likely to reach 25 percent.
yonngong@yna.co.kr
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