Trade minister urges utmost efforts to secure oil, naphtha supplies amid Mideast crisis

Trade Minister Yeo Han-koo speaks at a meeting with business officials in Seoul, Wednesday, to discuss Korea's response to global economic issues. Yonhap

Trade Minister Yeo Han-koo has called for utmost efforts to secure alternative oil and naphtha supplies to reduce uncertainties for Korean companies from supply disruptions caused by persisting turmoil in the Middle East, Yeo's office said Wednesday.

Yeo held an emergency virtual meeting late Tuesday with commercial attaches and trade officials dispatched to the country's major trading partners to discuss response to the supply crisis of major industrial materials, including crude oil and naphtha, according to the Ministry of Trade, Industry and Resources.

In the meeting, Yeo urged the officials to use all available resources to secure alternative sources of such materials by strengthening their outreach to foreign governments and resource companies to help reduce supply chain uncertainties for businesses here.

In a separate meeting with major business officials Wednesday, Yeo said he has asked India, the United Arab Emirates and other countries to help Korea secure oil and naphtha supplies, according to the ministry.

Regarding the U.S. administration's trade inquiries into Korea under Section 301 of the 1974 Trade Act, the minister pledged efforts to safeguard national interests and ensure that the country is treated no less favorably by the U.S. compared with other major economies.

The ministry said it will continue efforts to address the energy supply and other trade-related issues concerning domestic companies while working to expand its trade network to help them secure new export markets and growth engines in the long term.

Separately, Vice Industry Minister Moon Shin-hak held a meeting with officials from local petrochemical and chemical companies, where they agreed to put in "all-out" efforts to secure naphtha supplies.

The government imposed export restrictions on the industrial material last month and has earmarked 469.5 billion won ($311 million) in the recently proposed supplementary budget to help companies import naphtha.