South Korea moves to stop copper scrap from being smuggled out as iron scrap

South Korea will require exporters to report iron scrap shipments to authorities, as part of efforts to stop valuable materials such as copper scrap and electronic waste from being smuggled abroad disguised as iron scrap.

The Ministry of Climate, Environment and Energy said Wednesday it will begin a public notice period Thursday for two revised ministerial notices — one governing waste items subject to the Act on Transboundary Movement of Wastes and Their Disposal, and another covering waste items whose imports are restricted to promote domestic recycling.

Once the revisions take effect, iron scrap and non-ferrous metals — currently exempt from export and import reporting requirements — will be added to the list of items requiring export declarations.

Copper scrap is used as a raw material in electric cables, pipes, building materials and electronics, while electronic waste can yield permanent magnets and rare earth elements.

Cases of copper scrap and electronic waste being disguised as iron scrap and shipped overseas have continued to surface. In August 2024, a smuggler was caught attempting to illegally export copper scrap to China by misrepresenting it as iron scrap.

The revisions also ease import rules in several areas. Circular resources other than waste paper and waste glass will be exempt from export and import reporting requirements, and waste cooking oil and used IC trays will also be freed from reporting obligations.

The revisions additionally remove polyester synthetic fiber waste from the list of prohibited imports. The material can be used as recycled raw material for polyester fiber, but domestic chemical fiber companies have relocated their production facilities overseas, making it harder to source domestically.

The import ban had been in place to protect the domestic recycling market, but the ministry decided to lift the restriction as more foreign apparel companies seek out recycled polyester fiber.

The revisions also carve out an exception allowing imports of otherwise prohibited items when the purpose is testing or research, such as quality and performance analysis.

The ministry will collect opinions from stakeholders and the public through Aug. 5, after which the revisions will undergo regulatory impact analysis and review by the Ministry of Government Legislation before taking effect on Jan. 1, 2027.

Kim Go-eung, director general of the ministry's resource circulation bureau, said the revisions aim to "tightly manage exports of valuable waste resources while facilitating imports, in order to strengthen the domestic supply chain for critical minerals." He added that the ministry would "continue pursuing regulatory rationalization so that domestic industries can more easily secure the high-quality waste resources they need."