Seoul: Trade Minister Yeo Han-koo has called for utmost efforts to secure alternative oil and naphtha supplies to reduce uncertainties for South Korean companies from supply disruptions caused by persisting turmoil in the Middle East, Yeo's office said Wednesday.
According to Yonhap News Agency, Yeo held an emergency virtual meeting late Tuesday with commercial attaches and trade officials dispatched to the country's major trading partners to discuss response to the supply crisis of major industrial materials, including crude oil and naphtha. The Ministry of Trade, Industry and Resources highlighted Yeo's directive for officials to leverage all available resources to secure alternative sources of these materials by enhancing outreach to foreign governments and resource companies, thus mitigating supply chain uncertainties for businesses.
In a separate meeting with major business officials on Wednesday, Yeo mentioned that he has sought assistance from India, the United Arab Emirates, and other countries to help South Korea secure oil and naphtha supplies. The ministry also addressed the ongoing U.S. administration's trade inquiries into South Korea under Section 301 of the 1974 Trade Act. Yeo pledged efforts to safeguard national interests and ensure favorable treatment for South Korea compared to other major economies.
The Ministry of Trade, Industry and Resources stated that it will continue addressing energy supply and trade-related issues affecting domestic companies while working to expand its trade network to help them secure new export markets and growth engines over the long term.
Separately, Vice Industry Minister Moon Shin-hak convened a meeting with officials from local petrochemical and chemical companies. They agreed to exert "all-out" efforts to secure naphtha supplies. The government has imposed export restrictions on the industrial material and allocated 469.5 billion won (US$311 million) in the recently proposed supplementary budget to support companies in importing naphtha.