Government-proposed projects open to applicants through Oct. 30

A semiconductor wafer [123RF]
A semiconductor wafer [123RF]

The Ministry of Climate, Environment and Energy said it will accept applications from Wednesday through Oct. 30 for companies to participate in three government-proposed regulatory sandbox projects aimed at recovering critical minerals from waste generated in semiconductor manufacturing and other circular economy initiatives.

The "circular economy regulatory sandbox" regime, introduced in January 2024, allows companies to pilot new technologies and services within defined time, location and scale limits. If safety and effectiveness are verified, the relevant regulations are then revised or supplemented accordingly.

The regime currently covers 63 projects, including on-site recycling of discarded solar panels and the establishment of recycling standards for lithium iron phosphate batteries.

This round follows a government-initiated "planned" format, in which the ministry proposes the projects and recruits participating companies. The focus is on recovering critical minerals from byproducts of semiconductor manufacturing — a key domestic industry — as well as from spent batteries and discarded solar panels, both of which are expected to be generated in large volumes in the coming years.

The first project involves establishing management standards for classifying semiconductor process byproducts as circular resources. Waste materials from semiconductor manufacturing — including silicon, the primary material in wafers used to form chip circuits, and targets, the metal plates used to coat thin metallic layers onto wafers — contain critical minerals such as silicon, copper and titanium. However, because the need to recover these resources was historically low, a domestic recycling system capable of processing them has not been adequately developed.

To address this, companies with technology to recover critical minerals from such waste will be granted regulatory exemptions during a pilot period. The ministry will then verify the hazardousness and economic viability of the recycling process and establish usage criteria and management standards needed to officially designate these materials as circular resources.

The second project targets critical mineral recovery from spent batteries and discarded solar panels. Although these waste streams have been limited in volume until now, a sharp increase is anticipated, creating strong demand for developing a domestic recycling industry. Companies that possess new recovery technologies but face difficulty complying with existing recycling standards — or operate in areas where no standards yet exist — will be allowed to run pilot operations, with regulatory improvements to follow.

The third project involves diversifying feedstocks for sustainable aviation fuel, or SAF. With a mandatory SAF blending requirement set to take effect next year, there is a need to secure supply sources beyond used cooking oil, which currently dominates the feedstock mix. The ministry plans to pilot the collection, traceability management and oil extraction from frying residue — currently classified as food waste with limited recycling uses — and will then consider creating new waste classification codes and recycling categories for the material.

Companies wishing to participate may apply through EcoSquare, an integrated environmental technology and industry service platform operated by the Korea Environmental Industry and Technology Institute, from Wednesday through Oct. 30.

After receiving applications, the ministry will evaluate each proposal for alignment with the project objectives and the specificity of the business plan, then grant regulatory sandbox status following review and approval by a preliminary review committee and a deliberation committee.

Approved companies must complete their pilot projects within a two-year period, which may be extended by an additional two years. During this time, the ministry will provide up to 120 million won ($89,200) in pilot project funding and up to 20 million won in liability insurance premiums, along with legal review support where needed.

"Securing critical minerals — essential materials for advanced industries such as semiconductors and AI — is directly tied to national competitiveness," said Kim Go-eung, director general of the ministry's resource circulation bureau. "We will pursue comprehensive support and refine the regulatory system to recover critical minerals from future waste resources, including through these government-proposed projects."


thlee@heraldcorp.com