As the Middle East situation worsened, the government issued a resource security crisis alert at the "interest" level. Resource security crisis alerts are issued considering the severity of the crisis and the potential impact on people's lives and the national economy, and are operated in four levels: "interest-caution-alert-serious."

As the Strait of Hormuz is effectively shut, raising concerns over domestic energy security including Middle East crude supplies, tanker trucks move in and out at the entrance of the Daehan Oil Pipeline Corporation Gyeongin Branch oil storage in Goyang, Gyeonggi Province, on the 5th. /Courtesy of Yonhap News

The Ministry of Trade, Industry and Resources said at 3 p.m. on the 5th that it would issue a crisis alert to this effect. The Ministry of Trade and Industry (MOTI) said the criteria for issuing the alert were met, citing ◇ continued instability in major Middle Eastern oil- and gas-producing countries ◇ concerns about transport disruptions due to a blockade of the Strait of Hormuz, a key shipping route ◇ increased market volatility as oil prices rose more than 10% after the situation unfolded ◇ the possibility of disruptions to crude oil imports due to interference with Hormuz transit.

Regarding crude oil, the Ministry of Trade and Industry (MOTI) said it would "prepare to secure additional volumes to brace for a supply-demand crisis, get ready to release government stockpiles, and step up crackdowns on the petroleum distribution market," adding, "We also plan to significantly strengthen order in the petroleum market, including special inspections of illegal distribution such as "fake oil" and short measures."

It added, "If the situation worsens, we will push to secure additional volumes by bringing in overseas production and exercising international joint stockpiling purchase rights," and "If the supply-demand crisis deepens, we will prepare measures such as drawing up detailed release plans, including stockpile transfers, allocation standards by industry, and release timing, so that releases can take place immediately."

The government will also secure alternative volumes in case imports of Qatari liquefied natural gas (LNG) are suspended. The Ministry of Trade and Industry (MOTI) said, "We will draw up a spot purchasing strategy using portfolio corporations capable of supplying from Asia, including Malaysia," adding, "We are also discussing ways to use surplus volumes from future direct importers for self-consumption to stabilize domestic supply and demand." It also said, "If necessary, we plan to prioritize domestic introduction of additional volumes secured from overseas LNG projects in which the gas corporation has participated with equity."

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