South Korea's Ministry of Trade, Industry and Energy announced on Wednesday that it plans to lower its crude oil dependence on the Middle East to 50% by 2035, aiming to diversify its energy supply sources and mitigate potential supply disruptions caused by ongoing conflicts involving Iran. In its newly released ten-year natural resource security blueprint, the ministry emphasized that given the way the Iran situation has disrupted global energy flows, the nation must undertake a "fundamental shift" in its supply chain strategy.
The ministry highlighted that South Korea is heavily reliant on oil imports, with 70% of its petroleum supply in 2025 coming from the Middle East, the majority of which transits through the Strait of Hormuz. Under the revised strategy, Seoul has adjusted its crude stockpiling program, targeting an increase of approximately 20 million barrels in reserves by 2030.
Additionally, the ministry stated that South Korea intends to bolster the supply of condensate, an ultra-light oil primarily used for producing naphtha. Since the outbreak of Middle East hostilities, the country has grappled with shortages of naphtha, a crucial feedstock for its petrochemical sector. According to ministry data, roughly 45% of South Korea's naphtha demand is met through imports, with about 77% of that typically sourced from the Middle East.
In the natural gas sector, after reducing import dependence on the Middle East to 20% in 2025, the government's objective is to keep this level below 30% by 2035. As part of the broader supply chain fortification efforts, the roadmap will also expand South Korea's list of critical minerals from 38 to 51 items, adding 10 types of rare earths along with germanium, a material essential for semiconductor production.
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