Recycling scrap metal can compensate for the shortage of steel resources in Korea, cut down on current account deficit by reducing imports of steel and scrap metal from abroad, and thus reduce costs for processing iron ore. To improve the rate of scrap metal recycling, it is important to collect scrap metal actively and have an efficient distribution structure with stable supply-demand systems. Thus, this thesis is to investigate and analyze the current status of collecting scrap metal and its distribution structure in Korea, identify problems and present possible solutions to improve the situation. As a research method to do this, a literature research was used to analyze scrap metal industry based on a variety of materials such as reports, journals, statistics and news articles.
According to the research findings, the supply and demand of scrap metal have problems such as lack of separating scrap metal, the absence of an efficient pricing system, low competitiveness caused by industrial structure which is dependent on small and medium-sized businesses, low rate of scrap metal recycling across the country, and difficulty predicting supply and demand. Therefore, to cope with these kinds of problems, waste scrap metal should be properly separated for recycling, which can contribute to stabilizing supply and demand. Moreover, careful attention should be paid to the management of supply and demand by improving price predictability.
The problems with the distribution structure should be improved significantly not only by setting up an organization exclusively aimed at improving the supply, demand and distribution of scrap metal but also by raising its expertise and predictability.