_Mineral Resources_—Mineral resources of Korea are varied and rather extensive, but with a few exceptions are of low grade. There is a large deposit—over one billion metric tons—of low grade (35 per cent magnetic) iron ore at Musan in Northeastern Korea which the Japanese mined extensively before and during the war. Capacities are said to have been developed for the production of over 800,000 tons of pig iron and 350,000 tons of steel annually, but operations were possible only by large imports of bituminous coal from Manchuria and Japan. In both North and South Korea, gold and copper were also mined, the latter as an adjunct of the former, and some lead and zinc, and a large quantity of graphite, the latter, however, of low quality. There is enough developed tungsten production in South Korea to make it an important export commodity. _Industries_—The prospects for Korean industry, even in the event of early unification, are not bright. Before 1931 Japan exploited Korea primarily as a source of raw materials, rice and cheap labor. Thereafter Korea became Japan’s bridgehead to the Asiatic mainland, and with Manchuria, was developed as the mainland portion of Japan’s war potential. By 1938 there were 7,000 factories, mostly small, employing 183,000 workers, principally in the production of chemicals, textiles and processed foods. Main industrial concentrations were in the north, near hydroelectric power plants and the larger mineral deposits. This rather impressive industrial plant was not damaged by bombing, but it would be a mistake to assume therefore that Korea possesses a ready-made industrial plant which could quickly be turned to full and efficient peacetime operations. Production, at perhaps 20 per cent of capacity, was restored after the occupation, but output has dwindled as stocks of raw materials have been exhausted, and as machinery has stopped functioning for lack of spare parts and competent maintenance and operating personnel. The dearth of competent administrative supervisory and technical personnel, practically all of whom were formerly Japanese and are now evacuated, is the outstanding deficiency in Korean industries, power, and transportation systems. The unification of North and South Korea would make some of the required raw materials available, and spare parts may eventually be obtainable from Japan, but the serious deficiency of competent personnel is an unresolved problem.