Ships pass through the Strait of Hormuz as seen from Musandam, Oman, on July 17 (local time). [Reuters]
Ships pass through the Strait of Hormuz as seen from Musandam, Oman, on July 17 (local time). [Reuters]

South Korea will mobilize every available policy tool — including alternative shipping routes and strategic oil reserve swaps — if a renewed crisis in the Middle East blocks passage through the Strait of Hormuz, the government said.

The Ministry of Trade, Industry and Energy said Sunday it held an "Emergency Review Meeting on the Middle East War's Impact on the Real Economy," chaired by Minister Kim Jung-kwan.

Kim, who is accompanying President Lee Jae-myung on an overseas trip, joined the meeting by video link from Frankfurt, Germany, where he reviewed the current status of resource imports, inventory levels and progress in securing alternative supplies.

The meeting also focused on supply-and-demand contingency plans for each commodity in a worst-case scenario in which both the Strait of Hormuz and the Bab el-Mandeb Strait are disrupted simultaneously.

For domestic oil imports, volumes secured for August and September already exceed last year's average, and procurement for October is being arranged in sequence.

The government does not expect short-term supply disruptions to be significant, but acknowledged that if uncertainty over passage through the Hormuz and Bab el-Mandeb straits persists, preparations will be needed to secure supplies for October and beyond.

The ministry will monitor crude oil import schedules and oil tanker movements to ensure planned shipments arrive in South Korea as scheduled.

Kim directed officials to work closely with the refining industry on the feasibility of using available alternative routes — including the Suez Canal and Egypt's Sumed pipeline — and to be fully prepared to immediately resume the strategic oil reserve swap system if necessary.

More than 80 percent of South Korea's LNG is already sourced from outside the Middle East, but the government will continue monitoring imports through alternative suppliers in Southeast Asia, Australia and North America, and manage domestic inventories at stable levels as a precaution.

Naphtha supply requires sustained effort to secure stable volumes for September and beyond, given rising prices and other pressures. The ministry will maintain existing naphtha supply stabilization measures and develop additional plans to secure volumes from September onward.

Petrochemical product inventories are currently at stable levels, the ministry said. However, should uncertainty over naphtha import conditions and maritime transport persist, the ministry will strengthen the operation of the Petrochemical Intermediate Products Supply-and-Demand Review TF and intensify monitoring of key commodity supply chains to prepare for potential impacts on petrochemical production and supply.

"Please monitor and manage the supply situation in real time, taking into account even the worst-case scenario of a blockade of the Bab el-Mandeb Strait on top of the Strait of Hormuz," Kim said. "Make thorough preparations so that all available policy tools — including the use of alternative routes and strategic oil reserve swaps — can be fully mobilized when a crisis occurs."


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