The government diversified crude oil import sources to 17 countries to overcome energy supply disruptions caused by the Middle East crisis. It said this secured 50 million barrels in April and 60 million barrels in May.
Yang Gi-uk, Deputy Minister for Resource Security at the Ministry of Trade, Industry and Resources, said at a briefing by the task force responding to the Middle East situation on the 7th, "Alternative crude is being brought in from 17 countries, including Saudi Arabia, the United States, the United Arab Emirates (UAE), Brazil, Australia, Congo, and Gabon."
Volumes secured in April–May are 60%–70% of the average for the same period in a typical year, and refinery utilization is currently holding at 90%. The government plans to use strategic stockpile swaps to maintain utilization.
The oil stockpile swap system exchanges government-held strategic oil with alternative volumes secured overseas by refiners. To bridge the gap until the refiners' alternative volumes arrive in Korea, the government first releases stockpiled oil and receives it back when the alternative crude comes in.
Deputy Minister Yang said, "Applications for oil stockpile swaps have exceeded 30 million barrels, and if more than four additional contracts are finalized this week, the total contracted volume will reach 8 million barrels."
Supply of key materials in semiconductors, autos, batteries, and shipbuilding remains stable so far. Lee Min-u, Director General for Industrial Policy at the Ministry of Trade and Industry (MOTI), said, "All domestically consumed nickel sulfate is produced in Korea, and ethylene gas is being supplied normally through consultations with shipbuilding and petrochemical corporations," adding, "Helium has been fully replaced with U.S. supply, and aluminum wheels are being alternatively sourced from Malaysia, India, and China."
However, the packaging materials industry is in an uneasy situation. The Director General said, "Some packaging materials companies are reporting difficulties due to rising raw material prices and reduced supply," adding, "The Ministry of Trade and Industry (MOTI), the Ministery of Food and Drug Safety, and the Ministry of SMEs and Startups will form a task force (TF) to closely examine supply conditions."
The government designated ramen packet and infant formula packaging, which draw high public interest, as top-priority items for management. For paint, if the price of solvents—its raw materials—continues to rise, there are concerns about reduced supply, so authorities are pushing to shorten customs clearance times by applying special import exemptions under the Chemical Substances Control Act.
Meanwhile, the government is discussing with the National Assembly a plan to reduce electricity rates for petrochemical and steel industrial crisis zones. Although it was not included in the government's supplementary budget proposal, the need resurfaced during deliberations in the National Assembly. The Ministry of Trade and Industry (MOTI) is said to have requested a 4.2% electricity rate cut for major sectors' corporations in industrial crisis zones such as Yeosu, Ulsan, and Dangjin.