Closed-loop Metal Recycling: A Necessity for a Sustainable Industrial Economy

Accelerated by the recent years supply chain disruption and new regulations in advanced economies are creating opportunities for new suppliers to emerge across various supply chains worldwide. Some experts suggest this is an opportune moment for Korean SMEs to step out from under the umbrella of Korean MNCs and compete on the global stage. Do you agree? What are the challenges and opportunities for Korean suppliers in the global supply chain?

Manufacturing is deeply affected by the trade policies of countries we export to, especially the U.S. and Europe. As you mentioned, global supply chains are shifting under new regulations, which may curb some free trade but also open doors for cooperation among friendly nations, an opening for SMEs. Korean SMEs, in particular, have honed advanced technologies alongside bigger corporations for quite some time. I believe they’re well equipped to form new international partnerships and broaden their global footprint.

But we do face three key obstacles. First, raw material prices fluctuate constantly, and Korea, lacking natural resources, is exposed to global price swings. Second, environmental regulations keep getting stricter, each country enforcing its own set of rules. Third, competition everywhere is at a new high; smaller companies now wield technologies once exclusive to large enterprises.

The solution demands a proactive approach. To cope with raw material fluctuations, we need to diversify our sourcing and secure long-term contracts with reliable partners. Even if it means bearing extra costs or time, adopting eco-friendly processes early ensures we not only meet environmental standards but also reduce production costs, especially in smelting, refining, and waste treatment. These efforts can translate into a real competitive edge.

We must also develop our own ‘secret weapon’ on the global stage. Proprietary production technology will differentiate us from competitors and draw in potential customers. Handled correctly, these challenges can be transformed into new opportunities for growth, and I’m confident we have what it takes to make that happen.

You mentioned strong competition among Korean, European, and U.S. companies in the recycling industry. How do you view the development of Korea’s recycling industry compared to that of Europe or the U.S.?

In our line of work, securing a steady flow of waste materials is everything. Unlike mining, which draws raw materials directly from nature, we depend on byproducts generated during various manufacturing processes. In Korea, the concept of a circular economy only really took off in the 1990s, whereas many of our European and American competitors have over a century of experience in metal refining and chemicals under their belts. To keep up with them, we need to be razor-focused on our customers’ needs, provide quick and responsive customer-centered services, and maintain a strong edge in recovery and manufacturing technologies through continuous R&D.

Fortunately, Korea has a wide-ranging manufacturing and chemical base, from e-scrap (electronic waste) to petrochemical processes, which suits our business model well. These industries, forming the backbone of Korea’s economy, might have entered the recycling field a bit later, but they’ve caught up fast thanks to swift information exchange in a diverse range of recycling experiences. For example, with leading domestic semiconductor companies, we recover precious metals used in their manufacturing processes, refine them to high purity, and supply the resulting materials back to the parts makers, those who are the vendors of the emitters. In the petrochemical sector, we recycle the precious metals found in spent catalysts, extract high-purity metals, and sell them to customers. Some turn those into compounds we either deliver back to the original emitter or sell to catalyst manufacturers for use as raw materials.

That kind of circular approach is one of our biggest strengths, helping us build long-term partnerships with clients and establish a genuinely sustainable business model, a real circular economy. We also meet a variety of customer demands with personalized solutions, which I believe will resonate on the global stage. Meanwhile, we’re constantly refining our techniques for recovering rare metals, improving efficiency, and adding value. To achieve this, we adopt advanced technologies through international collaborations and tailor new processes to harness our advantages. By focusing on a virtuous circle of rare-metal recovery, high-purity refining, compound production, and distribution to relevant industries, we combine recycling, refining, and value-added solutions into one integrated approach. This sets us apart from the competition and shows exactly how we can hold our own worldwide.

As you mentioned before, you’re adding more value to recycled metals by creating higher-value compounds and using those compounds as raw materials for related industries, all in an effort to build a sustainable business model. Where do you see the next big opportunities arising from that approach?

First, our ultimate goal in the recycling business is a closed-loop system. A closed-loop approach might seem limited in scope, but it can have a powerful impact. For instance, when we supply materials to companies operating within a closed-loop system, our ability to reproduce high-quality materials from waste becomes highly recognized. That reputation often leads to more orders and partnerships, which fuels business growth.

Second, to add value within a closed-loop structure and move toward a truly sustainable industry, I believe the most critical factors are advancements in process and materials technologies. Just over ten years ago, we focused only on producing lower-purity metals like 2N or 3N. Today, not only do we produce 4N(99.99%) high-purity metals, but we also make more than twenty different precious metal compounds. This lets us supply top-tier raw materials to the market while providing tailored solutions to meet individual customer needs. By expanding our business concept in this way, we demonstrate our commitment to innovation and strengthen our partnerships with clients.

Global companies like Samsung Electronics and Apple are increasingly pushing subcontractors to use recycled metals, driven by stricter environmental policies and sustainability targets. As a result, the manufacturing industry is adopting more recycled materials. Not all materials are turned into new compounds just yet, but I expect this trend to grow significantly. That’s why we’re investing heavily in recycling technology and building up our capabilities in that field.

With recent fluctuations across industries in Korea, for instance, reduced productivity in the petrochemical sector and volatility in the electronics and semiconductor industries over the past four years, how do you plan to minimize the volatility in each industry?

In the early days, we started with recovering gold and silver from electronic waste. Later, we moved on to recycling batteries, and eventually branched out into recycling catalysts from the petrochemical industry. Truthfully, no matter if it’s electronics, semiconductors, or petrochemicals, these markets are always changing at a fast pace. That’s why, as a smaller company, we stay nimble and quick on our feet, constantly watching out for the next big resource that’s vital for recycling. Right now, we see significant opportunities in renewable energy and hydrogen fuel cells, both of which we expect to be major markets in the future. We’ve been preparing the technology to recover metals that will emerge from these new industries.

We’re also broadening the range of metals we can recycle by investing heavily in R&D. Our focus is especially on boosting the recovery rates of platinum group metals like rhodium, iridium, and ruthenium, which are difficult to recycle. These metals are crucial for future technologies, and by developing better ways to recycle them, we aim to become a leader in sustainable materials sourcing.

What are the key factors and distinguishing features that set you apart from competitors in the recycling industry today?

We recover more metal, in a shorter time, from the same amount of scrap compared to other companies. Our efficient, streamlined processes are based on technology that extracts the maximum possible from raw materials and also demonstrates our ability to refine them into high-purity metal, giving us a strong competitive edge. While many others focus on recovering only one or two high-value metals, we strive to extract every single valuable material we can. That capability really sets us apart.

As I mentioned, we’re especially focused on developing processes for metals that will be crucial in the future, like ruthenium, iridium, and rhodium. We work closely with overseas research institutions, universities at home and abroad, and even leading international firms to boost our recovery methods for these valuable metals, steadily advancing our technology. This makes us a pioneering company in Korea with a real emphasis on rare metals.

On top of that, we’re also committed to minimizing the environmental impact of our recovery processes. For instance, our R&D center, in collaboration with government agencies, has been working on national research projects to reduce carbon emissions, find substitutes for Sodium Cyanide in gold recovery, and develop NOx reduction methods. We’ve already seen considerable progress in these areas, and we’ll keep pushing for more eco-friendly solutions in partnership with government, academia, and related industries.

In manufacturing, especially in the electronics industry, when the specific metal prices rise, companies look for cheaper alternatives that shorten the cycle of switching from one material to another. That means a recycling company like SungEel HiMetal has to keep a close eye on new materials and develop preemptive recycling technologies to stay ahead. Quality improvements, technology development, eco-friendly proposals, and research on emerging materials are all approaches that truly differentiate us in the marketplace.

On the occasion of SungEel HiMetal’s 25th anniversary, could you share any specific marketing approaches or strategies you use when dealing with customers?

Our approach is comprehensive. Generally speaking, most of the oil refineries and petrochemical companies are massive global corporations, and as a smaller firm, it took us considerable time and effort to break into those markets. Building credible references also took quite a while. To earn our customers’ trust, we focused on precise sampling, maximizing production efficiency, and never missing a delivery deadline so we could meet client needs. Over time, these efforts accumulated and allowed us to offer unique benefits that appeal to global companies. Instead of zeroing in on just one thing like cost or quality, we strive to deliver a balanced, trustworthy service overall. With this foundation of reliability, we’ve forged relationships with major firms in Southeast Asia countries such as Vietnam, Singapore, Thailand, Malaysia, and Indonesia.

Entering a new market or forming a partnership with a new company requires years of trust-building and strong references, which can take a decade or more. But once a deal is made, it typically develops into a long-term business relationship.

Recycled pure precious metal bars (such as) gold, silver and platinum group metals.

In a previous question, you mentioned that maintaining accurate sampling is one of your key points. How exactly do you achieve that?

In my view, the recycling industry revolves around analysis and recovery, and analysis is the most critical step because it’s where we first build trust with our clients. Large amounts of waste usually contain very small quantities of the target metal, so getting a truly representative sample is extremely important. We can’t analyze everything, so we need to create a sample that accurately reflects the entire batch. That requires a high level of precision in the sampling process, which is why we developed and introduced an automatic sampler system to ensure reliable samples and deliver accurate results to our customers.

In the petrochemical and refining industries, a single batch of spent catalyst can weigh anywhere from 400 to 500 tons. Meeting deadlines with that volume while still producing a representative sample makes an automatic sampler essential. It filters out unwanted materials, simplifies the process, cuts down on manual labor, and reduces the time spent breaking down and sorting components. That efficiency has turned our sampler system into one of our key competitive advantages.

Could you share more information about the future of your R&D efforts, such as the recycling technologies for fuel cells?

We currently hold 35 registered technologies, including those already in use, and we’re continuously developing follow-up methods. We’re awaiting approval on 27 additional technologies, which will eventually become our own powerful arsenal. Our fuel cell recycling technology is already up and running, especially in relation to platinum and iridium compounds. Right now, the hydrogen fuel cells market is a bit stagnant, so the development of further recycling processes in that area is on hold. But if the hydrogen industry bounces back in the next five to ten years, we’ll be ready to roll out our technology and processes to keep pace.

SungEel HiMetal has been growing steadily for 25 years, and in the past few years especially, you’ve achieved remarkable sales. How do you see the next three to five years unfolding?

For 25 years, even through difficult times, SungEel HiMetal has constantly taken on challenges and continued to grow. Last year, we posted revenue close to 200 million dollars. At this point, rather than focusing on how much we can grow or how much revenue we’ll post in the next five years, I’d rather look at how we can become an even more valuable company.

Recycling is no longer an option, it’s a necessity for humanity. As long as people are around, there will be electronics and plastics, so the demand for recycling isn’t going anywhere. More companies will insist on recycled materials, and humanity will need to source critical resources from cities instead of mines.

Over the past 25 years, we’ve lived with the vision that we turn 'finite resources to infinite, to contribute the good of society.’ As part of that, we’re an RMI member, following responsible mineral policies and steadily obtaining international certifications, such as UL, to prove our recycling capabilities. Of course, this path isn’t without challenges: semiconductor technology may reduce precious metal usage, or chemical reactions may start using alternative materials.

To overcome these obstacles, we need to maintain diverse sourcing lines in various markets and ensure we’re positioned to supply whatever new materials the industry demands. Right now, we’re focusing on Southeast Asian countries like Vietnam, Singapore, Malaysia, Thailand, and Indonesia, using these experiences as a stepping stone for further expansion into the rest of Asia, the Americas, the Middle East, and beyond.

In just one or two sentences, what would you like our readers to take away from your part of the interview?

To spark their curiosity, I’d ask: ‘Have you heard of iridium?’ It’s two or three times more expensive than gold and plays a key role in advancing the hydrogen economy. When people think of recycling, most imagine plastics, aluminum, or copper, and may overlook how crucial precious metals are. The idea of ‘urban mining,’ which drew attention in the ’90s and early 2000s, has faded from public awareness, and many don’t realize how much harder it is to collect and recycle rare or precious metals. I believe our industry deserves greater recognition, and I’d like readers to appreciate just how important metal recycling really is.