SEOUL — The South Korean Presidential Office announced on Friday that the nation has secured a stable supply of crude oil for the coming month, totaling approximately 74.62 million barrels. This volume represents 87% of last year’s monthly average, a figure officials say is sufficient to prevent any significant disruptions in the domestic energy market despite ongoing global supply chain volatility.
Kang Hoon-sik, the Presidential Chief of Staff, provided the update during a press briefing at the Blue House, emphasizing the government's aggressive shift toward diversifying import sources.
Strategic Diversification of Energy Routes
A cornerstone of the current administration's energy policy is reducing the country's heavy dependence on Middle Eastern oil. According to Kang, the government has successfully lowered the proportion of crude oil imported from the Middle East from 69% to 56%—a 13% drop achieved in a remarkably short period.
"By securing additional volumes from the Americas and Africa, we are not only diversifying the countries we buy from but also the maritime routes our tankers traverse," Kang stated. He added that the government plans to expand support for private enterprises that seek new import channels, predicting that the trend of diversification will accelerate throughout the year.
Addressing the Naphtha Shortage
Beyond crude oil, the briefing touched upon growing concerns within the industrial sector regarding the supply of naphtha. As a crucial feedstock for the petrochemical industry, naphtha is essential for the production of plastics, synthetic resins, and everyday items like vinyl bags.
Acknowledging the anxiety in the manufacturing sector, Kang explained that the government is utilizing a "Traffic Light System" to monitor and evaluate the risks associated with core industrial commodities on a daily basis.
"Currently, our inventory of naphtha and basic fractions stands at a one-month supply, which places it in the 'Orange' risk category," Kang explained. "However, the outlook is improving. We have secured 2.1 million tons of naphtha through recent special envoy missions, which will begin arriving sequentially starting late this month."
Financial Support and Future Outlook
The government is also deploying fiscal measures to stabilize the market. The recently proposed supplementary budget includes provisions to bridge the gap in naphtha import prices, providing financial relief to companies struggling with high costs.
"Once the imported volumes arrive and the supplementary budget measures take full effect, we expect the risk level for naphtha to shift from Orange to 'Yellow' within the next month," Kang noted.
The Blue House reaffirmed its commitment to vigilant monitoring, promising to keep a close watch on global price fluctuations and logistics to ensure that the "bloodline" of the Korean economy—energy and raw materials—remains unblocked.
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