Rare Earth Exchanges

Legal Challenges in South Korea – Kazakhstan Collaboration on Subsoil Use

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Highlights

  • South Korea and Kazakhstan seek mutual benefits by combining mineral resources with advanced technologies and investments.
  • Legal frameworks and bilateral mechanisms support joint subsoil use projects across mining, energy, and rare earth element production.
  • Collaborative efforts face challenges including regulatory differences, environmental standards, and potential geopolitical risks.

A recent paper by B.A. Zharmakhanbetova and colleagues from the L.N. Gumilyov Eurasian National University examine the legal dynamics of collaboration between South Korea and Kazakhstan in subsoil use. The authors hypothesize that by combining Kazakhstan’s abundant mineral resources with South Korea’s advanced technologies and investments, both nations can achieve mutual benefits in resource development. The study highlights existing frameworks, including bilateral agreements, national legislation, and international conventions, which govern joint projects in mining, energy, and rare earth element production.

Key Findings

The paper identifies several areas of cooperation. To start under the legal framework category, both nations have robust legal systems supporting subsoil use. Kazakhstan relies on its Code on Subsoil and Subsoil Use and Law on Public Investments, while South Korea’s Mining Law and Law on Foreign Investments regulate domestic and international activities.

What about bilateral mechanisms? According to the authors, tools such as the Kazakh-Korean Intergovernmental Commission and working groups provide platforms for collaboration on technical, regulatory, and environmental challenges.

Finally, when reviewing technological and economic synergies between the two nations, South Korea’s access to advanced technologies and logistics infrastructure complements Kazakhstan’s rich mineral reserves, offering potential for sustainable and efficient subsoil development.

Limitations and Challenges

Rare Earth Exchanges surveys a handful of possible issues, such as regulatory divergence.  That is, the differences in legal and regulatory systems between the two nations may create friction in implementing joint projects.

As far as environmental standards, the alignment of environmental regulations while ensuring adherence to sustainable practices remains a challenge, particularly given Kazakhstan’s focus on infrastructure expansion and South Korea’s interest in securing resources.

What about some protection for investors?  While bilateral agreements exist, ensuring fair treatment and protecting investors’ rights under differing legal frameworks remains complex, raising risks.

And then, of course, there are those political risks.  Both nations face potential geopolitical and economic risks that could disrupt collaborations, such as shifts in trade policies or internal political instability.

Rare Earth Exchanges Take: What’s Missing?

The authors overlook some distinct probable material issues., They do not consider how to address disputes between parties over intellectual property rights in joint technological ventures. The impact of external geopolitical pressures, such as competition with other resource-dependent nations, on bilateral agreements. And for that matter, strategies for involving local communities in Kazakhstan to ensure equitable benefit-sharing and prevent social resistance. Does that matter here? Of course, it does.

Conclusion

While the recent paper (opens in a new tab) effectively highlights the potential and legal basis for South Korea-Kazakhstan collaboration in subsoil use, it falls short of addressing deeper structural and geopolitical challenges.

Future research should explore dispute resolution mechanisms, local stakeholder engagement, and strategies for harmonizing environmental and regulatory standards. This would ensure more robust and equitable cooperation between the two nations.

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