In response to potential disruptions caused by ongoing US and Israeli actions in Iran and the possibility of the Strait of Hormuz closure, the South Korean government announced Tuesday its plans to diversify oil supply sources, moving beyond the Middle East. Officials emphasized that South Korea maintains adequate oil reserves to weather potential crises.
The Ministry of Economy and Finance convened an emergency meeting with relevant ministries to analyze the impact of the Iran conflict on South Korea’s economy and formulate a comprehensive response strategy.
The ministry confirmed that no safety incidents have been reported concerning South Korean vessels operating in the Middle East region. Furthermore, they reassured the public that the nation’s oil reserves are sufficient to handle a prolonged crisis scenario.
As a precautionary measure against a potential blockade of the Strait of Hormuz, a crucial global oil export route, the government is actively working to secure alternative oil supplies from regions outside the Middle East, ensuring a stable energy supply for the country.
South Korea relies heavily on energy shipments through the Strait of Hormuz, with approximately 70.7% of its oil and 20.4% of its liquefied natural gas (LNG) originating from the Middle East.
The ministry stated that the government will maintain constant surveillance of domestic and international energy and financial markets. A market stabilization program, backed by at least 100 trillion won ($68.4 billion) in financial support, is ready for immediate implementation if deemed necessary to mitigate any potential economic impact.
