Ministry of Trade, Industry and Energy: ”Iranian airstrikes have limited impact on Korean industry” = South Korea

On the 14th, the South Korean government announced that the impact of Iran's retaliatory attack on Israel on the South Korean industry is currently limited. However, in preparation for the possibility that the situation in the Middle East may worsen in the future,
The Ministry of Trade, Industry and Energy decided to set up and operate a comprehensive situation room headed by the second vice minister of the Ministry of Trade, Industry and Energy.
The meeting was held following Iran's retaliatory attack on Israel on the night of the 13th (local time).
At the meeting, the ministry checked whether there were any changes in the supply and demand situation for crude oil imported from Iran, and confirmed whether there were any disruptions to marine logistics and transportation for domestic export companies.
The Korea Gas Corporation, Korea International Trade Association, Korea Trade-Investment Promotion Agency (KOTRA), Korea Trade Insurance Corporation and other related organizations participated in the inspection.
The impact on Korean industries in terms of imports, exports and supply chains will be limited, the ministry said. It also said it had drawn up contingency plans to be able to respond flexibly even if a worst-case scenario were to occur between Iran and Israel.
The Middle East produces one-third of the world's oil, and Iran is the third-largest producer of oil in the Organization of Petroleum Exporting Countries (OPEC).
Depending on the situation, international crude oil prices may fluctuate. Korea, which relies on imports for most of its energy, including crude oil, is directly susceptible to the effects of rising international crude oil prices.
The increase will not only push up the prices of energy such as electricity and gas, but will also increase production costs in the manufacturing industry as a whole, leading to higher prices and ultimately having a negative impact on the national economy.
However, there are currently no problems with the supply of crude oil or liquefied natural gas (LNG) to the country, and tankers and LNG carriers from the Middle East are operating normally.
There have been no delays in shipments or deliveries of Korean products, and the direct impact appears to be limited. In addition, there are few supply chain items other than crude oil and gas that are dependent on the Middle East, and only a few products, such as bromine, are affected.
For some petrochemical products, domestic production or alternative imports are possible, and the impact on the domestic supply chain is expected to be limited.
Meanwhile, the ministry will closely monitor the development of the situation and monitor the international oil prices and the overall Korean economy.
The ministry said it will analyze the impact of the situation on the public and take appropriate measures to ensure that the situation is under control. To this end, it will set up a comprehensive situation room headed by Vice Minister Choi and will oversee the oil and gas, trade, and supply chain management.
In areas such as food chains, the competent authorities and related organizations have decided to activate emergency response teams and maintain constant contact to monitor the situation on a daily basis.
At the meeting, Vice Minister Choi said, "The government will cooperate with relevant agencies to closely monitor the development of the situation and continue to monitor the situation.
"We will endeavor to minimize the impact on the Korean economy by responding in a phased manner according to the situation."