Middle East Oil Dependency at 69%: Iran War Exposes Structural Weakness in Korean Industry

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-powered customized news recommendation and summarization service developed with support from the Korea Press Foundation. It selects and provides six tailored news items for each reader type.

1. "Can Expanding Solar Power Secure Naphtha?" — Security Costs Hit Semiconductors and Shipbuilding

- Key Summary: South Korea, which ranks first among OECD members in oil dependency (5.63 barrels per $1 million of GDP), faces a structural energy supply vulnerability following the Strait of Hormuz blockade. With Middle East crude oil accounting for 69.1% of imports, naphtha supply disruptions are driving up prices of basic feedstocks such as ethylene and propylene, rapidly increasing cost burdens across industry. Experts pointed out that what is needed is not a simple transition to renewable energy but a redesign of energy procurement strategy that reflects "security costs." Kim Jin-su, a professor at Hanyang University, analyzed that reducing Middle East oil dependency to the 50% range is feasible, and voices are calling for parallel pursuit of domestic resource development including the Donghae Gas Field project.

2. Industry Minister Kim Jeong-gwan: "M.AX and '5 Poles, 3 Special Zones' Are the Solutions for Korea's Post-War Economic Leap"

- Key Summary: In an interview with the Seoul Economic Daily, Minister of Trade, Industry and Energy Kim Jeong-gwan presented Manufacturing AI Transformation (M.AX) as a core solution. The vision is to innovate manufacturing productivity through AI technology and secure a dominant position in global value chains, building an industrial foundation that can withstand geopolitical crises. He also announced plans to create an ecosystem where companies voluntarily cluster in regions through the "5 Poles, 3 Special Zones" strategy. The ministry plans to keep its response system operational even after a ceasefire, as it expects considerable time will be needed to resolve Strait of Hormuz navigation uncertainties and restore supply chains.

3. Coal and Nuclear Power Become Saviors in LNG Crisis — "Energy Mix Must Prioritize Security"

- Key Summary: When LNG prices surged following the Strait of Hormuz closure, coal-fired power generation — previously dismissed as obsolete — played a critical role in saving the power grid. Coal's share of power generation fell from 39% in 2017 to 28.7% last year, but its advantages of easy output adjustment and freedom from geopolitical risk are being reassessed. Nuclear power is also receiving favorable evaluations for supply stability, as uranium sources are geographically dispersed and plants typically secure at least one year's supply in advance. Industry voices are calling for a review of the plan to phase out coal power by 2040 and for securing emergency power capacity through a "cold reserve" approach.

4. Jay Y. Lee, Euisun Chung and Choi Su-yeon Turn Out in Force — Macron "Looks Forward to Hydrogen Cooperation with Hyundai Motor"

- Key Summary: As the Korea-France relationship was elevated to a "global strategic partnership," 12 MOUs were signed at the Korea-France Business Future Dialogue, attended by major business leaders from both nations. President Macron expressed anticipation for a hydrogen partnership with Hyundai Motor and AI and quantum semiconductor cooperation with Samsung Electronics. Concrete business collaborations also materialized, including Kakao Healthcare-Sanofi cooperation on multimodal AI-based new drug development and GS Caltex-Veolia advanced wastewater treatment projects. Notably, President Macron emphasized Europe's predictability and tariff stability compared to the United States while requesting expanded Korean corporate investment in Europe — a point observers say is worth noting when formulating global investment strategies.