Ambassadors to Korea from the six Gulf Cooperation Council (GCC) countries met with Deputy Prime Minister and Minister Koo Yun-cheol of the Ministry of Economy and Finance and said they would "give top priority to supplying energy to Korea."
According to the Ministry of Economy and Finance on the 5th, Deputy Prime Minister Koo met with the ambassadors to Korea of the six GCC countries—the United Arab Emirates (UAE), Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain—on the 3rd at the UAE ambassador's residence in Korea. At the meeting, the ambassadors said, "Korea is the top priority," and added, "We will communicate closely with the Korean government to ensure a stable energy supply."
This followed Deputy Prime Minister Koo's request for a stable supply of energy and the uninterrupted sourcing of key materials such as naphtha and urea, saying that if the Middle East war is prolonged, the negative impact on the Korean economy could expand.
The background to the six GCC countries naming Korea as their top priority appears to be Korea's high dependence on Middle Eastern energy imports. Korea imports about 70% of its crude oil from Middle Eastern countries. Saudi Arabia is Korea's largest crude oil supplier, and Qatar is a major liquefied natural gas (LNG) supplier. For this reason, if Korea diversifies its sources to respond to risks stemming from the Middle East, Middle Eastern countries could also be affected by reduced demand.
The advanced facilities of Korean refiners also appear to be a major factor. The domestic refining industry is equipped with facilities that can convert Middle Eastern heavy crude into high value-added products. Heavy crude is known as oil with high levels of impurities and sulfur, and if refiners shift their facilities to match other crude grades, the market share of Middle Eastern crude could decline.
Meanwhile, both sides were reported to have agreed during the meeting that it is important to keep their cooperative relationship steady, especially in times of crisis. They also agreed to continue expanding private sector–led economic cooperation and to work together in future-oriented industries such as artificial intelligence (AI) and defense.