Korea's leading semiconductor and battery companies — including Samsung Electronics (005930.KS), SK hynix (000660.KS), LG Energy Solution (373220.KS), Samsung SDI (006400.KS) and SK On — are heavily exposed to supply chain risks for key raw materials, a new report shows. More than 20% of the country's imports of cobalt, manganese, graphite and rare earths fall within the reach of export restrictions imposed by various governments.
According to the Organisation for Economic Co-operation and Development (OECD) report "Export Restrictions on Critical Raw Materials 2026," released on the 5th, 21.8% of Korea's critical raw material imports between 2022 and 2024 were exposed to export restrictions. The figure represents the share of imports coming from countries implementing measures such as export taxes, export licensing and export bans, out of the 65 critical raw materials designated by the OECD.
Korea's exposure rate exceeded the global average of 16.0% over the same period. It was also higher than that of Japan (18.4%), another major importer. Among OECD countries, Korea ranked near the top alongside the United Kingdom (22.7%). Analysts say that given Korea's industrial structure, which relies heavily on imported critical raw materials, domestic companies would suffer a greater shock if specific countries tighten export restrictions.
Many major critical minerals have already entered the "regulated market." Between 2022 and 2024, about 70% of global exports of cobalt and manganese were affected by export restrictions. Graphite stood at 47% and rare earths at 45%.
The problem is that these raw materials are essential across the semiconductor, battery and electronics industries. Cobalt, lithium and nickel are used as core battery materials, while rare earths and graphite play an important role in electric vehicles, electronic components and advanced manufacturing processes. Supply disruptions can drive up costs and directly strain production schedules.
The concentration of production in a handful of countries further amplifies the risk. For cobalt, lithium and nickel, the top three producing countries account for more than two-thirds of total output. The top producers of rare earths hold a share of about 90%. China, in particular, supplies about 70% of the world's rare earths and graphite and more than 90% of its germanium and magnesium, wielding overwhelming influence over the critical raw material market.
This structure is bound to weigh on Korean companies. If major producing countries raise export restrictions in the name of resource security, Korea's semiconductor and battery industries — highly dependent on imported raw materials — could take a direct hit. Amid intensifying global supply chain competition, securing critical minerals is emerging as a key variable not only for corporate competitiveness but also for national industrial security, experts say.
The OECD recommended that Korea diversify its import structure away from concentration in specific countries to reduce supply chain instability. It also stressed the need to grow the recycling industry, which recovers cobalt, lithium and nickel from spent batteries, to lower dependence on raw materials.
Over the medium to long term, the OECD advised that governments should use their export finance systems to expand investment in critical raw material mines and refining facilities. Rather than simply purchasing raw materials, countries should build stable supply chains spanning mine development, refining and recycling, it said.
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