As the government recently imposed a blanket ban on exports of naphtha (nasa), a key feedstock for the oil industry, starting at midnight on the 27th, Kim Yong-beom, Deputy Minister for Policy at the Blue House, on the 28th voiced concern about the side effects of the "export controls," saying "the solution lies in restraint."
In a Facebook post the same day, Deputy Minister Kim said, "If, in trying to protect naphtha, we lose the bigger currents of lithium and energy, that would truly be penny wise and pound foolish," adding it was "an unavoidable decision to protect the domestic production base."
He went on, "The deeper the situation gets, the louder the calls will grow to expand controls to other petrochemical items," noting, "the real problem starts now."
Deputy Minister Kim warned that if the export ban on naphtha disrupts the other side's production, it could in turn lead to other supply problems in critical minerals, energy, and food, saying, "the moment we shut (exports), the shock does not spread outward but rebounds on us."
He also said, "Export controls in a crisis are remembered for a long time," adding, "even after the situation ends, that memory can change the direction of the transaction relationship and at times lead to retaliation and substitution strategies."
It is interpreted as a concern that if Korea cuts off exports of petrochemical products beyond naphtha to resolve domestic issues, strategic partner relationships with counterpart countries could be damaged, and Korea's role in the supply chain could risk being replaced by other nations.
Deputy Minister Kim stressed, "What is needed is not stronger controls but fine-tuned management," adding, "Domestically, energy conservation and efficiency must be a given. Externally, we must maintain trust with strategic partners."