Ministry of Trade Industry and Resources

Minister JK (Jung-Kwan) Kim of the Ministry of Trade, Industry, and Resources (MOTIR) held a meeting on April 15, 2026, to review Korea’s supply conditions naphtha and crude oil and discuss response measures, as uncertainty in the Middle East persisted despite the U.S.-Iran ceasefire.

Although tensions in the Middle East have eased for the time being, key risks remain, including uncertainty over passage through the Strait of Hormuz and broader disruptions to maritime shipping. Korea therefore needs to closely monitor supply risks and review response options, as 73 percent of its naphtha imports and 69 percent of its crude oil imports come from the Middle East.

The meeting was attended by officials from relevant ministries, including the Ministry of Oceans and Fisheries (MOF) and the Ministry of Foreign Affairs (MOFA), as well as representatives from the shipping, refining and petrochemical industries. It brought together the full industrial chain, from crude oil transport and refining to the production of industrial, medical, and consumer goods. Participants reviewed import conditions for naphtha and crude oil, alternative shipping routes, and production and supply plans for petroleum products. They also shared their on-the-ground conditions, operational challenges, and policy suggestions.

Minister Kim said, “We will do everything possible to minimize disruptions to people's daily lives and maintain industrial operations by diversifying supply sources for naphtha and crude oil and securing alternative logistics routes.” He added, “MOTIR will work closely with industry and relevant ministries and deploy all available policy tools to address on-the-ground difficulties without delay.”

Korea will launch a KRW 674.4 billion program to support additional naphtha imports. The program will cover 50 percent of the difference between pre-war prices and actual import prices for naphtha contracted between April and June. To help ease short-term supply pressures, it will also apply to naphtha substitutes such as LPG and condensate, as well as basic petrochemical feedstocks including ethylene and propylene.

Furthermore, the government will accelerate naphtha imports to help restore operating rates affected by naphtha shortages following the conflict and expand domestic supplies of petrochemical products. To minimize disruptions to people's lives, the government will work with petrochemical companies to prioritize feedstock supplies for health and medical products, key industries, and everyday necessities.

The government will also expand freight-cost support for crude oil imports from the Americas, Africa, and Europe to diversify supply sources. Under the revised oil import surcharge refund program, it will fully offset the additional freight costs relative to Middle Eastern crude for imports from those regions during April-June, increasing refunds by an estimated KRW 127.5 billion.