Completely Dependent

Korea to Expand Overseas Search for Energy

South Korea will expand its overseas search for both coal and oil this year, government officials said Thursday.Korea Resources Corp. and SK Corp. have requested permits to take part in three additional coal projects this year, one of which in Australia will be completely controlled by the two.South Korean companies also operate in Indonesia, China, Russia, Canada and the United States.

While the country produces 22.2 percent of its own coal, total coal imports reached 69.3 million tons last year, and were worth 4.5 trillion won ($4.8 billion). Coal from mines in which South Korean companies held an interest came to 15.4 million tons.Twenty-five companies were either mining or exploring new sources of coal in 25 countries in 2005.The bulk (45.6 million tons) of the imported coal is used to generate power, while 16.9 million tons is used by steel factories.

The remainder is used by industries like cement production, according to the Ministry of Commerce, Industry and Energy.Guaranteeing a steady supply of coal is becoming more important as high demand in China drives up prices, according to the ministry.

As the fourth largest oil importer in the world, South Korea will also try to expand independent oil projects abroad. South Korea is completely dependent on imports for its oil supply, making it the fourth largest oil importer in the world.Under a plan to expand independent oil development projects over the next 10 years, 12.15 trillion won ($12.8 billion) will be spent to help the Korean National Oil Corp. and private companies explore overseas oil fields, according to the Ministry of Science and Technology.

The ministry hopes to raise the percentage of imported oil produced by overseas independent oil developers from the current 3.8 percent to 18 percent by 2015.The move is expected to help the country save 47.4 trillion won ($50.7 billion) in energy import costs and create 300,000 new jobs in the energy and resource sectors.

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