The government is pushing to close all coal mines by 2030. Currently, there are only two remaining coal mines in the country: the ‘Doke Coal Mine’ of the Korea Coal Corporation and the privately-owned ‘Gyeongdong Sangdeok Mine.’ Among these, the Doke Coal Mine is scheduled to close on the 30th, and the government has set a policy to encourage the Gyeongdong Sangdeok Mine to also shut down by 2030.
According to the government and political circles on the 27th, the Ministry of Trade, Industry and Energy recently reported to the Presidential Committee on Policy Planning the guideline for the ‘end of the coal industry by 2030.’ This policy is said to be included alongside President Lee Jae-myung's promise to close coal-fired power plants.
President Lee mentioned during the presidential election campaign that he would ‘gradually close coal-fired power generation by 2040 and transition to eco-friendly energy.’ Coal-fired power generation mainly operates on bituminous coal imported from abroad, primarily Australia.
Domestic coal mines predominantly produce anthracite, which is used as a heating fuel for households. Nevertheless, the government has established a policy to end coal production as an extension of President Lee’s commitment to ‘脱석탄’ (decarbonization) eco-friendly principles.
Since the Gyeongdong Sangdeok Mine is a private mine, the government cannot forcibly terminate its operation. It remains a task for the government to devise policies to encourage the mine's closure. Policies to create alternative industries to address the acceleration of economic stagnation in the region, and job losses, should also accompany this.
In fact, Donggye-eup in Samcheok City, where the coal mine is located, has raised concerns about ‘regional extinction’ and demanded alternatives. According to a ‘Research Service for Response to the Closure of Coal Mining Areas’ conducted by Gangwon Province last year, it is predicted that a total of 2,561 job losses will occur, including 1,685 in Samcheok and 876 in Taebaek, if the Jangseong and Doke mines are closed.
This accounts for 18% of the population of Donggye-eup, which was 8,925 as of last month. If the last remaining Gyeongdong Sangdeok Mine is closed, the job loss issue is likely to worsen.
The government is currently seeking new avenues for development. Notably, the preliminary feasibility study results for the ‘Closure Area Economic Revitalization Project,’ a core industry for the closure area, are scheduled to be announced in July.
This project has a total budget of 700 billion won and aims to create a ‘Future Resources Cluster’ in Taebaek, including clean methanol production and logistics base and a key mineral industrial complex, and a ‘Medical Cluster’ in Samcheok utilizing a heavy ion accelerator.
However, the government is still contemplating policies to encourage the closure of the Gyeongdong Sangdeok Mine. A government official stated, “Given the significant concerns in the region, (the end of the coal industry) is not an easy matter,” and noted, “We are working on solutions.”