Seoul, South Korea – In its ongoing efforts to ensure energy security and protect its economy from sharp fluctuations, the South Korean government announced Friday that it has secured 74.62 million barrels of crude oil for May.
This strategic move comes in response to the uncertainty gripping global energy markets following the outbreak of a US-Israeli war with Iran. This has led to disruptions in supply chains through vital waterways.
Securing basic needs
According to data reported by Al Jazeera and official reports from Seoul, the secured quantity represents approximately 87% of the country’s average monthly oil imports over the past year.
Kang Hoon-sik, Chief of Staff to South Korean President Lee Jae-myung, stated that these supplies will directly contribute to stabilizing the domestic market. He also emphasized that the government is working in full coordination with the private sector to ensure there are no shortages of petroleum products or disruptions to vital facilities.
Diversifying sources and reducing regional dependence
In a significant strategic shift, Kang revealed during a press briefing at Cheong Wa Dae (the Blue House) that his country has successfully reduced its historical dependence on Middle Eastern oil. Imports from the region have fallen from 69% to 56%. This was achieved through intensified cooperation with alternative suppliers in the Americas, Africa, and Central Asia, including the United States, Brazil, Kazakhstan, and Algeria.
Alternative routes away from Hormuz
The South Korean official confirmed that a significant portion of the contracted shipments for May, specifically from Saudi Arabia and the UAE, will be transported via alternative shipping routes that bypass the Strait of Hormuz to avoid the risks of a blockade or military targeting.
Despite Seoul’s success in securing the required quantities, Kang cautioned that the “cost burden” could increase as global oil prices remain high. He also noted that the war’s impact on domestic inflation rates is already becoming apparent. The South Korean government concluded its statement by affirming its continued monitoring of the security situation in the Gulf around the clock. It also declared its readiness to utilize the country’s strategic reserves should the crisis escalate, to ensure the uninterrupted operation of South Korean industry.
