The Ministry of Trade, Industry and Resources elevated its Middle East crisis response unit to a Vice Minister-level "response headquarters" and fully activated a crisis management regime for crude oil and gas supply. With even the worst-case scenario of a Strait of Hormuz blockade in mind, it launched concrete emergency plans, including the immediate release of strategic petroleum reserves and securing alternative gas supply lines.
Minister Kim Jung-kwan of the Ministry of Trade and Industry (MOTI) presided via video at 3 p.m. on the 3rd over the third real-economy review meeting and examined the impact of the Middle East crisis on resources and energy supply, trade, supply chains, and finance. The meeting was attended by related ministries and agencies, including the Ministry of Foreign Affairs, the Ministry of Climate, Energy and Environment, the Ministry of Oceans and Fisheries, and the Financial Services Commission, as well as Korea National Oil Corporation, Korea Gas Corporation, the Korea Trade-Investment Promotion Agency (KOTRA), the Korea Chamber of Commerce and Industry, the Korea International Trade Association, and commercial attachés from the United States, China, Japan, and the European Union (EU).
The government believes that, regarding oil supply, sufficient strategic petroleum reserves are in place and short-term effects will be limited. However, if the situation drags on and private crude inventories fall below a certain ratio, it will immediately supply reserves from nine storage bases nationwide, including Yeosu and Geoje, to the domestic market.
For gas, more than 80% of total imports are from outside the Middle East, allowing a considerable period of response even if Qatari supplies are fully cut off. To prepare for contingencies, it will also prearrange alternative supply sources in Southeast Asia, Australia, and North America.
In terms of trade and logistics, major container carriers are already rerouting around the Cape of Good Hope in Africa, so the current impact on maritime logistics is limited. However, authorities will closely monitor 1,063 corporations whose exports to seven Middle Eastern countries adjacent to the Strait of Hormuz account for 50% or more of their total, and will proactively push emergency export vouchers and liquidity support.
Naphtha, a key feedstock for petrochemicals, relies on the Strait of Hormuz for 54% of import volumes, so the government plans to work with the industry to shift export volumes to the domestic market and secure alternative supply chains.
The Ministry of Trade and Industry (MOTI) on this day upgraded its emergency task force—headed by Director General Yang Ki-uk, chief of the Office of Industrial Resource Security—into the "Middle East situation response headquarters," led by Deputy Minister Moon Shin-hak, and immediately entered a crisis management regime for crude oil and gas supply.