Seoul: As the Iran war shows signs of becoming prolonged, disruptions to global supply chains are spreading across the economy and industry. The impact extends beyond surging energy prices to growing concerns over shortages of raw materials and industrial inputs. For Korea, which relies heavily on imports of resources, the shock is direct and significant, with risks extending into manufacturing, logistics and daily consumption. Pressure on fuel prices is intensifying. On Sunday, the third day of the government's second round of price controls, the average gasoline price in Seoul exceeded 1,900 won per liter. Deputy Prime Minister Koo Yun-cheol said that if international oil prices rise to between $120 and $130 per barrel, the current vehicle rationing system applied to public institutions could be expanded to the private sector as a contingency response.
According to Yonhap News Agency, tensions are also rising in production. The most immediate concern is a shortage of naphtha, a key feedstock for plastics and other manufactured goods. Korea imports about 50 percent of its naphtha demand, with roughly 60 percent coming from the Middle East. Since the outbreak of the war, overall supply has declined by about 30 percent. Production disruptions are becoming visible across consumer goods, including food packaging, PET bottles and garbage bags, as well as medical plastics such as IV fluid bags and synthetic fibers, raising concerns across industries.
The semiconductor sector is also on edge. A strike on Qatar's liquefied natural gas facilities has raised concerns about helium supplies, an essential coolant in chip manufacturing. Korean companies have secured stockpiles lasting several months, but uncertainty is growing as Qatar accounts for about 30 percent of global helium supply. The disruption could ripple further, affecting food prices as well if fertilizer production costs rise.
Given the uncertainty surrounding the conflict, the government must prepare for worst-case scenarios with detailed and flexible responses. It should first assess demand across industries and firms to design precise plans for securing energy and raw materials. The government and businesses must act together to diversify supply chains and identify alternative sources while coordinating closely.
Clear communication is equally important. By providing transparent information, the government can help prevent panic buying and encourage voluntary energy conservation. Any expansion of the vehicle rationing system to private users should be carefully designed to minimize disruption for those who depend on cars for their livelihoods and essential daily activities nationwide.