South Korea

SK이노, 폐배터리 재활용 시장 진출

ZD Net Korea | Local Language | News | Sept. 18, 2025 | UndeterminedBizdev-Partnering

SK Innovation is expanding into the global battery recycling market by licensing its proprietary spent battery recycling technology (BMR) through a memorandum of understanding (MOU) with U.S.-based engineering firm KBR. The agreement formalized at the Fastmarkets Conference in Portugal on September 16 involves KBR integrating SK Innovation’s BMR with its high-purity crystallization technology for global market sales, with SK Innovation to receive royalty revenue.

SK Innovation developed the BMR technology since 2017 to address limitations in conventional lithium recovery methods and constructed a commercial demonstration facility in 2021 capable of recovering lithium hydroxide from spent batteries equivalent to around 800 electric vehicles annually. The company has filed over 100 patents related to this technology domestically and internationally, showcasing its capability in producing high-purity lithium suitable for battery manufacturing and compliance with stringent regulations like the EU Battery Regulation.

KBR, a global engineering company with about 34,000 employees and $7 billion in annual revenue, sees SK Innovation’s lithium recovery technology as economically advantageous compared to existing methods. Both parties emphasize the environmental benefits, regulatory compliance, and commercial viability of their combined technologies. At the conference, SK Innovation’s Environmental Science and Technology Institute head Kim Pil-seok highlighted the potential of their technology to meet resource constraints and environmental regulations amid electric vehicle market growth.

Korea Herald | English | News | Sept. 18, 2025 | Regulation

South Korea’s Prime Minister Kim Min-seok indicated that National Assembly approval may be required for the planned $350 billion investment package in the United States if the final deal imposes a significant fiscal burden. The investment package, a key part of a tariff deal agreed upon in July, remains under negotiation as Seoul and Washington work to resolve issues related to profit-sharing and fund structure. Kim referenced Article 60 of South Korea’s Constitution, which mandates assembly consent for treaties imposing important financial obligations on the state.

Foreign Minister Cho Hyun supported the need for transparency and public explanation, emphasizing that regardless of the agreement’s form—whether a memorandum of understanding (MOU) or otherwise—any public financial burden must be accompanied by National Assembly consultation and consent. He dismissed concerns that using an MOU was a tactic to avoid assembly ratification. The two countries agreed on August 25 to structure the fund under an MOU rather than a legally binding treaty.

Delays in the negotiations stem from South Korea’s reluctance to accept U.S. demands, which the Lee administration views as potentially harmful to the national economy. South Korea has not yet signed the initial proposals, considering some elements to be risky. To address Washington’s request for a higher proportion of direct cash contributions to the investment fund, Seoul has proposed reviving a Korea–U.S. unlimited currency swap agreement, which expired in 2021, as a financial safeguard. This suggested swap reflects Seoul’s concerns over foreign exchange market shocks given that the $350 billion package would represent about 84% of its $416.3 billion foreign reserves.

Yonhap | English | News | Sept. 18, 2025 | UndeterminedTrade Issues and Numbers

South Korea's imports of pharmaceuticals from the United States exceeded US$1 billion in 2024, reaching $1.02 billion, according to data from the Ministry of Food and Drug Safety (MFDS). Cancer treatments and drugs for rare diseases made up a growing portion of these imports, with cancer drugs accounting for 23.7 percent of total U.S. pharmaceutical imports in 2024, up from 14.3 percent in 2021. Combined, cancer drugs, rare disease treatments, and vaccines represented 52.7 percent, or $537.7 million, of the total imports.

The data also revealed that South Korea imports 83 U.S.-exclusive medicines, including Pfizer’s cancer therapy injection and Novartis’ treatment Zolgensma for spinal muscular atrophy, with no domestic or alternative international options available. Experts have warned that South Korea's heavy dependence on U.S. pharmaceuticals may increase risks related to tariff negotiations and potential supply chain disruptions.

In response, Rep. Kim Mi-ae of the opposition People Power Party emphasized the need for the South Korean government to implement comprehensive strategies. These include developing strategic reserves of essential medicines, diversifying import sources, and expanding domestic pharmaceutical production to ensure a stable supply of critical drugs.