Prolonged conflicts in the Middle East and concerns over the closure of the Strait of Hormuz are directly impacting the lifeline of the Korean economy. Especially with a sharp decline in Korea's imports of key raw materials such as crude oil, naphtha, and helium last month, the industrial structure highly dependent on the Middle East is rapidly being restructured. Looking at trade statistics, last month's crude oil import value reached $5.95 billion, a 5.3% decrease from the same period last year, and the share of Middle Eastern crude oil dropped by 10 percentage points from 73% to 63%. While export values from major oil-producing countries such as Saudi Arabia, the United Arab Emirates, Iraq, and Kuwait decreased significantly, U.S.-sourced crude oil imports surged by 75.8%, reaching a record high within 1 year and 8 months, indicating the formation of alternative supply chains.
The shortfall caused by the decline in Middle Eastern crude oil is primarily being filled by U.S.-sourced crude oil. U.S.-sourced crude oil has the advantage of being easy to utilize by mixing with heavy crude due to its light crude characteristics suitable for domestic refining processes, so the refining industry is actively promoting U.S. imports by expanding short-term spot trading. The government also views expanding the U.S. share as an inevitable choice in the process of reducing dependence on Middle Eastern crude and regards it as an important strategy in terms of supply chain diversification. In fact, imports of Australian and Malaysian crude oil also increased by 44.7% and 140.5%, respectively, indicating that diversification of import sources is accelerating. This appears to reflect the government's policy of continuing to promote the introduction of Middle Eastern crude oil and the dispersion of shipping routes even if the Middle East war subsides.
A similar trend is observed in naphtha, the foundation of the petrochemical industry. Last month, the naphtha import value reached $1.99 billion, a 23.8% decrease from the previous year, while imports of naphtha from Middle Eastern countries such as Qatar, the United Arab Emirates, and Kuwait decreased, while imports of naphtha from Oman, Greece, and the United States surged by 28.5%, 193.5%, and 5,652.8%, respectively. Naphtha is a basic raw material for various chemical products such as plastics and synthetic fibers, and supply instability can lead to increased production costs and reduced factory operation rates; however, companies are moving in a direction that prioritizes procurement stability over unit prices, recognizing the risks of a supply structure concentrated in a specific region.
In the case of helium, a coolant essential for semiconductor and display manufacturing, the situation is even more sensitive. Last month, helium import value decreased by 23.5% from the previous year, and it was found that helium from Qatar, the largest supplier, decreased by 30.1%. With the main helium production facilities in Qatar halted by Iranian drone attacks, concerns over production disruptions are rising, and it is pointed out that it is more difficult for Korea to find alternative import sources than for crude oil or naphtha, as Korea relies on Qatar for 64% of its helium imports. Experts emphasize that due to the structural supply shock caused by the combination of concentrated production sites and bottlenecks in sea shipping routes, a shift to a procurement system centered on securing quantities is necessary in the short term, and the industrial structure must be fundamentally changed in the long term to maintain production even with high oil prices and supply chain disruptions.
The government is responding by closely monitoring the situation on the ground and ensuring no disruptions in the supply of petrochemical raw materials needed for healthcare and key industries, centering on the joint Supply Chain Support Center of relevant ministries and agencies. However, this incident once again revealed how deeply the Korean industry relies on specific regions and sea shipping routes. This trend is likely to lead to a comprehensive restructuring of the supply chain, including not only crude oil but also petrochemical raw materials and industrial gases, and it appears that comprehensive policies and changes in corporate strategies are needed beyond simply expanding import sources, such as expanding reserves, diversifying logistics routes, and concluding long-term contracts.