Korea Elevates Middle East Response as 1,063 Exporters Face Risk

The Ministry of Trade, Industry and Energy has upgraded its Middle East emergency response team to a full response headquarters and will enter crisis management mode for crude oil and natural gas supply.

The government will also strengthen support for approximately 1,000 companies whose exports to Middle Eastern countries near the Strait of Hormuz account for more than 50% of their total shipments.

Minister of Trade, Industry and Energy Kim Jung-kwan announced these measures at the third Real Economy Review Meeting on the Middle East Situation on June 3, joined by officials from the Ministry of Economy and Finance, Ministry of Foreign Affairs, Korea National Oil Corporation, and Korea Gas Corporation. Minister Kim, currently accompanying President Lee Jae-myung on state visits to Singapore and the Philippines, chaired the meeting via video conference from the Philippines.

The government launched the Middle East Situation Response Headquarters on the same day, headed by the Vice Minister of Trade, Industry and Energy. This represents an upgrade from the response team established on May 28 under the Director General of Industrial Resource Security, when the United States launched large-scale operations against Iran.

The government will also prepare contingency plans anticipating a possible blockade of the Strait of Hormuz. Minister Kim urged relevant agencies to closely monitor oil tanker traffic and prepare alternatives, including shipping schedule adjustments, for immediate implementation should the strait face a full blockade.

Regarding oil supply, the government assesses short-term impact will be limited given sufficient strategic reserves. However, the ministry will convene an internal assessment meeting to decide on releasing reserves if private crude oil inventories fall below certain levels due to a prolonged crisis.

The government will conduct close monitoring of 1,063 export companies that ship more than 50% of their goods to seven Middle Eastern countries near the Strait of Hormuz. Preemptive support measures include emergency export vouchers for logistics and alternative market development, as well as liquidity assistance.

For natural gas, more than 80% of imports come from non-Middle Eastern sources, and stockpiles remain substantial. Even a complete halt of Qatari imports would allow Korea to manage for a considerable period.