Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Yoon's remarks on Iran feared to endanger Korea's shipping industry
Korean oil tanker, MT Hankuk Chemi, operated by DM Shipping, departs the Iranian port of Rajai, after being released, along with its captain, in this April 2021 file photo. Iranian authorities had seized the ship near the Strait of Hormuz in January 2021, alleging violations of environmental regulations. Courtesy of Ministry of Foreign Affairs
By Park Jae-hyuk
By Park Jae-hyuk
Korea's lingering diplomatic conflict with Iran, inflamed by President Yoon Suk Yeol's recent remarks branding the Middle Eastern country as the archenemy of the United Arab Emirates, has been mentioned as a potential threat to the Korean shipping industry, since the Korea Shipowners' Association (KSA) issued a warning last Wednesday to vessels sailing in the Persian Gulf and the Strait of Hormuz to “remain vigilant.”
Just a few days after Yoon sparked the diplomatic controversy during his visit to the UAE, the KSA sent a letter to its members to warn them of growing concerns about the safety of ships sailing off the coast of Iran.
“The Islamic Revolutionary Guard Corps (IRGC) seized two Greek oil tankers in May 2022, and the U.K. is set to designate the IRGC as a terrorist group,” the association said in the letter. “We ask you to be extra cautious about sailing in the Persian Gulf and the Strait of Hormuz.”
As the KSA's notification has been used by Yoon's opponents to criticize him, the KSA has since pulled it down from its official website, denying any relevance of its recent warning to the president's remarks.
The association told the press that it had issued a similar warning in January last year, on the occasion of the second anniversary of the U.S.?drone strike assassination of Qasem Soleimani, an Iranian military officer who was highly ranked in the IRGC. However, a KSA spokesperson was unavailable for comment on Tuesday about the reason behind the deletion of the notification.
Despite the KSA's attempts to calm the controversy, there remain concerns about the possible negative impacts of the diplomatic feud with Iran on the Korean economy, because Korea transports more than 70 percent of its crude oil imports via the Strait of Hormuz.
Considering the fact that an oil tanker operated by a Korean shipping company, DM Shipping, was seized by the IRGC between January and April 2021, Korean shipping companies have remained cautious about the recent diplomatic tensions, saying they are keeping a close watch on this issue.
Even before Yoon made the triggering remarks, Tehran has cried foul over Seoul's refusal to return $7 billion, which are proceeds from Iranian oil sales. The money has been held in accounts at Woori Bank and the Industrial Bank of Korea in compliance with U.S. sanctions against Iran.