As the Middle East war continues for over a month, the South Korean government has announced it will ban hoarding not only of naphtha but also of petrochemical products including packaging materials and plastics. The government also plans to establish supply-demand adjustment regulations for petrochemical products to prevent disruptions in the production of critical items such as healthcare and daily necessities.
Kim Jeong-kwan, Minister of Trade, Industry and Energy, held a "Meeting to Review Petrochemical Product Supply-Demand Conditions by Industry Related to the Middle East War" at the Korea Federation of SMEs in Yeongdeungpo-gu, Seoul, on the 2nd. "Concerns surrounding petrochemical products have grown to the point where the public has become familiar with the term 'naphtha,'" Kim said, outlining the plans.
The meeting was convened to assess the impact on domestic supply chains across key sectors including semiconductors, displays, batteries, steel and construction, and to discuss joint public-private response measures. Six government ministries related to petrochemical products attended, including the Ministry of Economy and Finance, the Ministry of Food and Drug Safety, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Climate, Environment and Energy, the Ministry of Land, Infrastructure and Transport, and the Ministry of Oceans and Fisheries.
"Naphtha is a core raw material that underpins daily life, going beyond being the rice of industry," Kim said. "Fortunately, petrochemical products such as IV bag packaging, ethylene gas and pay-as-you-throw bags, as well as materials such as helium, hydrogen bromide and sulfuric acid — which have been flagged as concerns in media reports — are expected to face no supply-demand issues through the first half of the year," he stressed.
"Following the implementation last week of regulations restricting naphtha exports and stabilizing supply-demand, we are also preparing regulations to ban hoarding of petrochemical products and adjust their supply-demand," Kim said. "As soon as the supplementary budget — which subsidizes 50% of the price increase differential for naphtha import costs — is confirmed by the National Assembly, we will execute it swiftly and closely ensure there are no disruptions in the production of critical items needed for healthcare, daily necessities and core industries."
"For difficulties reported to the Middle East War Supply Chain Support Center, we plan to request suppliers to prioritize delivery based on urgency and importance," Kim said. "We will respond firmly with a zero-tolerance principle against any acts that exploit a community crisis as a means to pursue private gain."
