South Korea

CRITICAL

Oil Import Dependency

73%

LNG Import Dependency

40%

Situation Overview

South Korea's petrochemical industry depends heavily on Gulf crude, with 73% of imports transiting Hormuz. The country's export-driven economy is uniquely vulnerable because petrochemicals represent a major export category, and the feedstock shortage threatens not just domestic supply but Korea's position in global chemical markets. The government has imposed fuel rationing measures and is drawing down strategic reserves at an accelerated rate.

Economic Impact

Petrochemical sector facing critical feedstock shortage with estimated $310B annual impact. South Korea's strategic reserves cover approximately 90 days by mandate, but at current drawdown rates, these will be depleted within months. Major refiners including SK Innovation and GS Caltex have reduced throughput by 30%. The government is seeking emergency supply agreements with the US and Russia.

Key Facts

73% crude from Gulf
Petrochemical industry at risk
Limited alternative suppliers
90-day reserve mandate
Refinery throughput -30%
Emergency US/Russia supply talks