Ministry of Industry: "Iran's Airstrikes on Israel Have Had Limited Impact on Korean Industry So Far"

The government has decided to thoroughly monitor the situation regarding Iran's airstrike on Israel, analyze its impact on international oil prices and the overall Korean economy, and devise countermeasures to ensure meticulous management of the situation.

The Ministry of Trade, Industry and Energy held an emergency situation review meeting with related agencies on the afternoon of the 14th, following Iran's sudden airstrike on Israel using attack drones and missiles, to assess the potential impact on Korea's economy, focusing on energy supply and demand and prices of oil and gas, as well as exports, imports, and supply chains.

This Iranian airstrike on Israel is expected to affect international crude oil prices, logistics, and supply chains. However, according to the emergency review conducted by the Ministry and related government agencies on the same day, the impact on Korea’s industries, including oil, gas, exports, imports, and supply chains, is currently assessed to be limited. Even if the worst-case scenario unfolds, the government plans to respond with thorough measures.

Choi Nam-ho, Vice Minister of the Ministry of Trade, Industry and Energy (center), is presiding over an "Emergency Situation Review Meeting on Iran's Attack on Israel" on the 14th at his office in the Government Seoul Building, Jongno-gu, Seoul, attended by officials from related agencies including Korea National Oil Corporation, Korea Gas Corporation, Korea International Trade Association, KOTRA, and Korea Trade Insurance Corporation.

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Regarding oil and gas, there have been no disruptions so far in the import of domestic crude oil and liquefied natural gas (LNG), and oil tankers and LNG carriers navigating or loading near the Middle East are confirmed to be operating normally. In terms of exports and imports, shipments and deliveries of Korean goods are proceeding without disruption, indicating a limited direct impact. Furthermore, aside from oil and gas, there are almost no supply chain items highly dependent on the Middle East, and for some petrochemical products with high Middle Eastern dependency, such as bromine used as a flame retardant, domestic production and alternative imports are possible, so the impact on domestic supply chains is expected to be limited.

The Ministry of Trade, Industry and Energy plans to closely monitor the situation as it develops, analyze the impact on international oil prices and the overall Korean economy, and devise countermeasures to ensure thorough management of the situation. To this end, a comprehensive situation room will be established, led by Second Vice Minister Choi Nam-ho, and emergency response teams for each sector?oil and gas, trade, supply chains?comprising relevant departments within the Ministry and related agencies, will operate to maintain constant communication and conduct daily situation assessments.

At the meeting, Vice Minister Choi stated, "The government plans to closely monitor the situation in cooperation with related agencies and industries," adding, "We will respond step-by-step according to the situation’s development to minimize the impact on our economy."

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