Korea Resources Corp. President Koh Jung-sik
Korea Resources Corp. (KORES) has recently carried out a reorganization designed to secure resources technologies with the goal of lifting Korea to be among the top 20 global resources majors.
KORES has shifted from a three-division structure to a four-division one with a focus on securing technological capabilities necessary for the management of overseas resources exploration projects. The reorganization also focused on being reborn as a public enterprise pursuing shared growth in the course of overseas resources exploration.
The Technology Research Institute has been elevated to one whose research president serves as Chief Technology Officer, equivalent to the status of a division chief.
The Business Technology Division and the Engineering, Procurement & Construction Management (EPCM) Department has been inaugurated to equip itself with technological capabilities corresponding to the global stage and to upgrade its competitiveness. The new department is charged with construction and management of large-scale projects ranging from the design of major development and production facilities to procurement and construction.
KORES created the Strategic Exploration Department in charge of offering consulting services related to resources exploration to the private sector by acquiring world-class exploration capabilities like a venture firm of a global resources power. The purpose of the establishment of the department is to nurture a junior mining company, to be listed on the Toronto, Canada market by 2015.
The Resources Development Division, which had been charged with exploration and development according to both the kinds of resources being explored for and their development areas, has been reorganized into a structure for acquiring expertise according to each resources classification, while the Development Support Division has been renamed the Resources Infrastructure Division to exclusively deal with the support of the private sector. The division has inaugurated the Shared Growth Team.
The Investment and Legal Affairs Department has been created and charged with the signing of contracts on investments and deliberation of legal affairs, while the functions of the Manpower Management Department have been reinforced to hire expertise from the outside and nurture manpower with in-house manpower development programs.
KORES said the reorganization is primed to meet customers’ needs by creating the Shared Growth Team and securing capabilities so the corporation can team up with the private sector to make joint inroads into foreign countries.
KORES President Koh Jung-sik said, “KORES will collaborate with Korean conglomerates in implementing joint resources exploration projects in foreign resources markets by acquiring differentiated technologies and pursuing co-prosperity and shared growth with SME resources companies.” He added that KORES will speed up work under the reorganized structure and strive to move toward the realization of its goal of becoming a global top 20 resources developer country.
AUGMENTATION OF KORES’S LEGAL CAPITAL
In the meantime, the government announced plans to raise KORES’s legal capital from 2 trillion won to 5 trillion won and to require the corporation to set aside a given portion of its sales to invest into R&D activities. Added to the scope of KORES’s allowable businesses will be the processing of minerals and distribution. The plans are expected to help the new Park Geun-hye government give weight to the development of resources in Korea and abroad.
The Ministry of Knowledge Economy plans to submit a proposed revision of the Act on Korea Resources Corp. to the Ministry of Government Legislation by May before seeking approval at the National Assembly.
Established in 1967, KORES was charged with providing financial and technological support in the operation of privately-owned mines and mine prospecting. However, as securing natural resources overseas is becoming ever more significant, KORES has transformed itself into a specialized resources explorer. It was on Dec. 26, 2008 that KORES was given its new mission of exploring for natural resources on its own as a result of a revision of the Act and its articles of association.