Dear Subscribers,
May reinforced a trend that has been building steadily across the Australia–Korea relationship: economic security, energy security, industrial policy and national security are becoming increasingly interconnected.
Recent developments in Korea highlighted how closely these issues are now linked. From energy security and critical minerals to semiconductors, advanced manufacturing, artificial intelligence and defence, policymakers are increasingly viewing competitiveness, resilience and national capability as part of the same strategic challenge.
This theme was reinforced during the Chair and my visit to Seoul from 12–14 May. Across meetings with Korean business leaders and industry stakeholders, discussions consistently returned to three priorities: securing reliable energy supplies, maintaining competitiveness in strategic industries and navigating an increasingly complex geopolitical environment.
Two observations stood out.
First, there was a strong focus on energy security and supply chain resilience. Given Korea's highly industrialised economy and limited domestic energy resources, stakeholders remain acutely aware of the importance of reliable access to energy, critical minerals and other strategic inputs.
Second, the United States featured prominently in almost every conversation. Whether discussing trade, investment, technology, defence or supply chains, there was broad recognition that Korea's economic prosperity and security environment remain closely linked to its relationship with Washington.
Together, these discussions highlighted a broader shift underway in Korea. Economic policy is no longer viewed separately from national security, and governments and businesses alike are increasingly focused on building resilience in an uncertain and rapidly changing world.
May also delivered several important milestones that demonstrate the growing depth of industrial cooperation between Australia and Korea. One of the most significant developments was the final investment decision for the Nolans Rare Earth Project by AKBC member Arafura Rare Earths. The project represents an important step forward for Australia's critical minerals and rare earths sector and will contribute to diversifying global rare earth supply chains at a time when governments and industry are increasingly focused on supply chain security. Korea's advanced manufacturing, battery and technology sectors stand to benefit from greater access to secure and diversified critical mineral supplies.
The month also saw the announcement of a new carbon capture partnership between AKBC member Low Emission Technology Australia (LETA) and POSCO's N.EX.T Hub. The project will support the development of carbon capture technology at POSCO's Pohang Steelworks, one of the world's largest integrated steelmaking facilities, and represents a practical example of Australia and Korea working together to address the decarbonisation challenge.
I am particularly pleased that AKBC has played a meaningful role in supporting both of these developments. Over several years, the AKBC has worked to facilitate introductions, strengthen relationships and create opportunities for collaboration between Australian and Korean stakeholders. While major project announcements often appear to happen overnight, they are typically the result of long-term relationship building, trust and sustained engagement between businesses, governments and institutions.
These projects reflect a broader shift underway in the relationship. Increasingly, Australia and Korea are not simply trading with one another; they are investing together, innovating together and building the resilient supply chains and industrial partnerships that will underpin future economic growth.
Korea's economy continues to benefit from strong demand for semiconductors and artificial intelligence technologies, reinforcing its position within global technology supply chains. At the same time, policymakers are increasingly focused on ensuring that growth is supported by resilient energy supplies, secure critical mineral inputs and strong international partnerships. For Australia, this presents significant opportunities.
Our economies remain highly complementary, our strategic interests are increasingly aligned and both countries are seeking practical ways to strengthen resilience in an increasingly uncertain world.
The Australia–Korea Business Council will continue working closely with members, government stakeholders and our counterpart organisation, the Korea–Australia Business Council, to support these opportunities and strengthen one of Australia's most important bilateral economic relationships.
Preparations are also continuing for the 47th AKBC–KABC Joint Meeting in Adelaide on 1–2 September 2026, which will provide an important opportunity for Australian and Korean leaders to explore the next chapter of our economic partnership.
Kind regards,
Liz Griffin
Chief Executive Officer
Australia-Korea Business Council