Seoul: The government announced plans to secure oil supplies from regions outside the Middle East in response to the potential closure of the Strait of Hormuz, prompted by ongoing U.S. and Israeli strikes on Iran. The government emphasized that South Korea maintains sufficient oil reserves, should the crisis prolong.
According to Yonhap News Agency, the Ministry of Economy and Finance convened an emergency response meeting with relevant ministries to evaluate the impact of the situation on South Korea and formulate a response strategy. The ministry reported that no safety concerns have been identified involving Korean vessels in the Middle East, and the nation is prepared with ample oil reserves in case of a long-term crisis.
Nevertheless, the government is proactively working to secure additional oil supplies from non-Middle Eastern regions in anticipation of a possible blockade of the Hormuz Strait, a vital oil export route. South Korea's energy imports are heavily dependent on shipments through the strait, with approximately 70.7 percent of oil and 20.4 percent of liquefied natural gas sourced from the Middle East.
The government plans to monitor both domestic and international energy and financial markets continuously and is prepared to deploy a market stabilization program with at least 100 trillion won (US$68.4 billion) in support if necessary. The Korea Composite Stock Price Index (KOSPI) experienced a significant drop of over five percent by 12:05 p.m., leading to a sell-side circuit breaker activation amid heightened concerns related to the Iran crisis.
The ministry observed ongoing volatility in international oil prices, though the rate of increase has decelerated. The government pledged to address unfair market practices, such as the dissemination of fake news aimed at manipulating investor sentiment.
Vice Budget Minister Lim Ki-keun has instructed ministry officials to closely monitor government budget execution concerning export firms, shipping companies, and overseas Korean nationals to mitigate potential damages arising from the crisis, as reported by Lim's office.