Seoul, Feb 5 South Korea's industry ministry said on Wednesday it will monitor and respond to any possible impact from China's export restrictions on strategic minerals in an apparent retaliatory measure against the United States' recent tariff imposition.
The Ministry of Trade, Industry and Energy held a meeting with related ministries and local companies to check the metal supply in the country, according to its officials, a day after the Chinese government revealed its plan to impose at least a 10 per cent tariff on American imports, hitting back at US tariffs.
Beijing has also announced export controls on items related to five critical Earth metals, which are widely used across major industries, including the semiconductor and display sectors, reports Yonhap news agency.
The five metals are tungsten, indium, bismuth, tellurium and molybdenum.
The ministry said Seoul has tungsten supplies to last about six months and enough molybdenum supplies to last for some three months.
China plays a key role in South Korea's imports of these materials, accounting for 85 percent of tungsten imports and more than 90 per cent of molybdenum imports as of last year, according to the ministry.
The ministry said the government and the private sector will "closely" work together to respond to the possible impact on the economy and supply disruptions of the metals from China's moves.
Meanwhile, South Korean stocks finished over 1 per cent higher on Wednesday, tracking overnight gains on Wall Street. The Korean won was trading sharply higher against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 27.58 points, or 1.11 per cent, to close at 2,509.27.
Trade volume was high at 429 million shares worth 9.7 trillion won ($6.71 billion), with winners outpacing losers 589 to 300.
Institutions and foreign investors combined bought a net 99 billion won worth of local shares, while retail investors sold a net 197 billion won.
Overnight, Wall Street stocks were buoyed by eased concerns over trade following US President Donald Trump's decision to pause the imposition of tariffs on Canada and Mexico for a month.
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