From now on, petroleum products temporarily brought into Korea and stored for export to other countries (transshipment petroleum products) can also be mixed (blended) with other petroleum products in Korea and exported. Until now, to process transshipment petroleum products, companies had to move them to storage facilities overseas, but going forward, the way will open to do the work directly in Korea.
The Korea Customs Service said on the 20th that it will revise and implement the Special Notice on Procedures for Handling Transshipment Cargo to establish this special procedure. Blending is a process of reprocessing different petroleum products into products that meet buyers' desired specifications by considering environmental standards by country and use and the characteristics of petroleum product feedstocks.
Until now, transshipment petroleum products were classified only as items for simple storage slated for overseas shipment and were excluded from blending. This is why, even if they were stored in petroleum product storage facilities (comprehensive bonded zones) in Yeosu and Ulsan, they had to be moved overseas to be blended.
The Korea Customs Service said it prepared this procedure in light of demand from companies seeking to conduct blending work at domestic storage facilities and the shift of interest in offshore storage of petroleum products and crude oil to Korea following the Middle East situation. The steps proceed in the order of proof of a blending contract, a use declaration limited to the blending quantity, and export of the entire quantity after blending.
This special case is a measure to invigorate the domestic blending market, following the January 2024 institutional improvement that resolved taxation issues by deeming the entry of domestically produced petroleum products into comprehensive bonded zones as exports. After that improvement, exports of petroleum blending steadily increased, with 2025 results at 2.1823 trillion won, up 112% from the previous year. Results by year were 779.1 billion won in 2023, 1.0282 trillion won in 2024, 2.1823 trillion won in 2025, and 1.6511 trillion won in the first half of 2026.
With this special case, it becomes possible to blend combinations of imported, domestic, and transshipment petroleum products. Previously, only the combinations "imported+imported," "imported+domestic," and "domestic+domestic" were permitted. The Korea Customs Service projected an annual economic effect of more than 62 billion won from increased use of storage facilities, shipping, and ports.
Lee Jin-hui, director general of customs clearance at the Korea Customs Service, said, "Demand for petroleum product blending is expected to increase due to stronger eco-friendly energy regulations, such as limits on sulfur content in marine fuel and the use of sustainable aviation fuel," and added, "We will actively respond to the changing logistics and industrial environment and work hard to improve the system."