South Korea and Australia have agreed to deepen their collaboration on supply chains for key strategic sectors, signalling a new phase in their economic partnership amidst global supply chain realignments and geopolitical tensions.
South Korea and Australia have agreed to deepen their cooperation on supply chains for key strategic industries, marking a significant step in their bilateral economic partnership amid a shifting global supply chain landscape. This agreement was announced by Seoul’s finance ministry following inaugural talks held in Canberra between Sohn Woong-ki, a senior official from South Korea’s Ministry of Economy and Finance responsible for economic security and supply chains, and Jocelyn Cooper, his Australian counterpart.
The two countries emphasised the importance of regular dialogue and sharing best practices to effectively respond to the rapid realignments and uncertainties in global supply chains. According to the South Korean finance ministry, their cooperation will focus on leveraging their respective strengths to develop a partnership that adapts to future restructuring in global supply chains.
This recent development forms part of a broader context of expanding South Korea-Australia economic ties. Earlier in 2025, both nations advanced bilateral collaboration through several high-level initiatives. In March, South Korea’s Industry Minister Ahn Duk-geun had a virtual meeting with Australia’s Trade Minister Don Farrell, discussing ways to bolster cooperation across supply chains and future-oriented industries such as clean energy and digital sectors. Ahn requested Australia’s support for South Korean businesses investing in critical mineral sectors, signalling a shared interest in strengthening supply chain resilience.
The rising strategic importance of critical minerals forms a backbone of this partnership. Australia, positioning itself as a secure and reliable alternative source for critical minerals amid concerns about China’s dominance, has been actively seeking to expand its role in global supply chains. Australian Trade Minister Don Farrell highlighted this role in June 2025, underscoring Australia’s efforts to process critical minerals domestically and attract investment from global partners, including South Korea. This focus aligns closely with South Korea’s push to stabilize supply chains for essential resources vulnerable to global disruptions.
Cooperation in the energy sector is another pillar of the partnership. In February 2024, Woodside Energy, an Australian company, signed a long-term agreement to supply Korea Gas Corp with approximately half a million tonnes of liquefied natural gas annually starting in 2026. This contract, which forms part of supply from Woodside’s $12 billion Scarborough gas project, reflects a broader trend of securing diversified energy resources.
Clean energy and environmental sustainability are also central to the countries’ cooperative agenda. Since mid-2023, both governments have made joint efforts to enhance supply chains in clean hydrogen, eco-friendly steel production, and carbon capture technologies. For example, the Korea-Australia Green Economy Partnership Arrangement Forum held in February 2025, organised by South Korea’s Ministry of Trade, Industry and Energy, aimed to accelerate collaboration on clean hydrogen, carbon capture, and critical mineral supply chains. Additionally, in September 2024, South Korea’s Minister for Trade and Western Australia’s Premier signed a memorandum of understanding to boost cooperation on renewable energy and critical mineral supply chains, underscoring the layered and multi-level nature of bilateral engagement.
These initiatives are driven by a mutual recognition of the geopolitical and economic challenges posed by ongoing global supply chain realignments, including geopolitical tensions and climate change imperatives. The South Korean government has simultaneously introduced a set of measures to stabilise supply chains in sectors most vulnerable to these disruptions, signalling a strategic approach that aligns with their international cooperation efforts.
Overall, South Korea and Australia’s evolving partnership highlights an increasing focus on strategic economic and energy security, critical minerals, and clean technology development. This cooperation not only promises to bolster supply chain resilience for both nations but also positions them as key players in the future restructuring of global industrial and energy networks.
Source: Noah Wire Services
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