Business Community: "Seven Korean Oil Tankers Stranded... Prolonged Crisis Could Hit Data Center Construction" [US-Iran War]

"Burdens Across Export Sectors Including Shipping Industry"

"Seven Vessels Carrying Korea's Daily Oil Consumption Stranded"

Semiconductor Industry Also Concerned Over Supply of Key Materials

Due to the aftermath of the Middle East war, it has been identified that seven crude oil tankers operated by South Korean refiners are currently stranded in the Strait of Hormuz. The business community has expressed concerns over disruptions to crude oil transport, and further pointed out that, if the situation is prolonged, it could also impact the construction of data centers in the Middle East and the supply of key semiconductor materials.

On the morning of March 5, at the opening remarks of the "Emergency Meeting on the Middle East Crisis and Tariff Negotiations between the Democratic Party and the Business Community" held at the National Assembly Members' Office Building, Kim Changbum, Standing Vice Chairman of the Korea Economic Federation, stated, "If the Iran situation drags on, not only the energy and shipping industries, but also Middle East export projects and related sectors could face significant burdens." He added, "With restructuring in the petrochemical industry having just begun, challenges facing the related industries are expected to increase further."

He continued, "Given the variables of energy prices, logistics costs, and exchange rates, as well as changes in the overall trade and supply chain structure, including both tariff and non-tariff measures, it is time for comprehensive government support and response." He also urged for the swift passage of the Special Act on Investment in the United States. Attending the meeting were Democratic Party lawmakers from the Foreign Affairs and Unification, Trade, Industry and Energy, SMEs and Startups, and Strategy and Finance committees, as well as representatives from the Korea Economic Federation, Korea International Trade Association, Korea Trade-Investment Promotion Agency (KOTRA), among others. Companies participating from the private sector included Samsung Electronics, Hyundai Motor, LG, SK, GS Caltex, HD Hyundai, and Hanwha Ocean.

Kim Changbum, Vice Chairman of the Federation of Korean Industries, is speaking at an urgent meeting between the Democratic Party of Korea and the business community on Middle East issues held at the National Assembly Members' Office Building on the 5th. Photo by Kim Hyunmin

During the meeting, the business community reported that a total of seven crude oil tankers operated by domestic refiners are currently stranded in the Strait of Hormuz, and called for countermeasures. "It is said that seven South Korean corporate vessels are currently stuck in the Strait of Hormuz. One vessel alone, on a large scale, is carrying about 2 million barrels, which is roughly South Korea's entire daily oil consumption. With up to seven vessels stranded, companies have requested urgent action," they stated. Specifically, two ships belonging to HD Hyundai Oilbank and one to GS Caltex are among those stranded. "From the companies' perspective, there have been requests to explore whether it would be possible to utilize government reserves and to maintain close coordination regarding the situation," they added.

Additionally, due to the nature of the refining industry and contractual obligations, companies explained that they cannot immediately withdraw their personnel, and requested advance on-site notifications to ensure the safety of their workers.

Meanwhile, the semiconductor industry pointed out that there are concerns over potential disruptions to future data center construction in the Middle East—particularly in the United Arab Emirates and surrounding regions. Assemblyman Kim noted, "Currently, the total planned global data center construction volume is about 40 gigawatts, with 7 to 8 gigawatts scheduled to be built in the Middle East by 2030."

There were also concerns that a prolonged war could affect the procurement of core materials needed for semiconductors, as about 90% of the world's key semiconductor materials, including helium, are sourced from the Middle East. Vice Chairman Kim added, "There is no immediate shock to semiconductor demand, but if the situation is prolonged, there are concerns that data center construction could be delayed or further worsened." He emphasized the need for close collaboration between the public and private sectors to thoroughly analyze the impact on industries such as refining and semiconductors.

This content was produced with the assistance of AI translation services.