South Korea plans to reduce its dependence on Middle Eastern crude oil to below 50% by 2035 after disruptions linked to the Iran conflict exposed vulnerabilities in its energy supply chain. Seoul is also preparing to expand oil reserves and diversify imports.
South Korea Moves to Cut Middle East Oil Dependence
South Korea is preparing a longer-term shift in its crude oil import strategy after the Middle East conflict disrupted traditional energy routes and exposed the risks of relying heavily on one region.
The government plans to reduce the share of crude oil sourced from the Middle East to below 50% by 2035, according to a report published September 23. The strategy is part of a broader effort to diversify energy and raw-material supplies following the disruption around key shipping routes.
The move comes after months of instability around the Strait of Hormuz and the Red Sea. South Korea is one of Asia’s major energy importers and has historically depended heavily on Middle Eastern producers for crude.
The current strategy does not mean Seoul intends to immediately abandon Gulf suppliers. Instead, the government is seeking a broader supplier base so that disruptions in one region have a smaller impact on domestic fuel availability.
Middle East Disruptions Expose Supply Chain Risks
The Strait of Hormuz has become a central concern for Asian oil importers during the ongoing Iran conflict. The waterway is a major route for crude and other energy shipments from the Persian Gulf to global markets.
South Korea has already taken emergency measures to protect its crude supply. On September 10, Prime Minister Han Seong-sook instructed officials to secure additional crude supplies for the months ahead and closely monitor the Strait of Hormuz and Red Sea shipping routes. The government said supplies covering the end of October had already been secured at more than 90% of the previous year’s level, but called for additional preparation if tensions continued.
A separate government review on September 14 said South Korean refiners had secured more than 90% of their crude requirements for September and October based on the previous year’s levels. Officials said the immediate supply impact was expected to remain limited.
The distinction is important. South Korea is not reporting an immediate shortage. The policy shift is aimed at reducing the risk of future shortages.
Middle East Share Has Already Started Falling
South Korea’s dependence on Middle Eastern crude has already declined.
President Lee Jae Myung said on September 12 that the Middle East’s share of South Korea’s crude oil imports had fallen from around 70% to about 50%. He linked the change to government efforts to diversify crude supplies amid the disruption of traditional routes.
That reduction has been supported by purchases from alternative regions and efforts to keep non-Middle Eastern supply routes open.
The shift is also consistent with a wider trend among major Asian energy importers. Reuters reported earlier this month that countries including South Korea, Japan and India have been turning increasingly toward crude from the Americas and Africa as geopolitical disruptions make traditional Middle Eastern routes less reliable.
For South Korea, diversification means accepting that some alternative cargoes may travel considerably farther. Longer shipping distances can raise transportation and insurance costs, but they can also reduce exposure to a single geographic supply corridor.
Seoul Plans 20 Million More Barrels of Storage
Import diversification is only one part of the new strategy.
South Korea also plans to expand its oil reserve storage capacity by an additional 20 million barrels, according to the September 23 report. The government is linking the expansion to the need for stronger energy security during geopolitical and supply-chain disruptions.
Strategic oil reserves provide governments and refiners with additional flexibility when commercial supplies are disrupted or shipping routes become difficult to use.
South Korea has already been using its reserves as part of its emergency response. The government restarted a strategic oil reserve swap system in September, allowing government-held crude to be supplied to refiners while companies replenish those volumes later. Officials have also said the system could be extended if necessary.
The government has separately offered support for additional shipping costs when refiners import crude from non-Middle Eastern suppliers. That measure is designed to make alternative sources more commercially viable while regional supply conditions remain uncertain.
Alternative Oil Sources Become More Important
South Korea’s diversification strategy is closely connected to changes in global crude trade.
When Middle Eastern supply becomes difficult to move, refiners have to compete for barrels from other producing regions. This can include crude from the Americas, Africa and other non-Gulf producers.
Reuters reported that the disruption has already pushed oil importers toward longer routes, while producers such as the United States, Brazil and Argentina have increased shipments into markets seeking alternatives.
The change has also affected the tanker market. Reuters reported on September 17 that more than 217 very large crude carriers had been commissioned during 2026, with longer transportation routes contributing to stronger demand for crude shipping capacity.
For South Korean refiners, this creates a new calculation. Buying crude from farther away can increase freight expenses, but maintaining several supply options can provide greater protection against sudden regional disruptions.
Oil Prices Remain a Major Economic Concern
The supply strategy is also being driven by the impact of higher oil prices.
Global crude prices have remained elevated during the conflict, with Brent trading above $100 per barrel in recent weeks. Higher crude costs can feed directly into gasoline and diesel prices and indirectly affect transportation, manufacturing and consumer inflation.
South Korean officials have therefore combined supply diversification with measures aimed at limiting domestic price pressure.
On September 12, President Lee said the government was using measures including oil price controls, export restrictions and strategic reserve swaps while working to stabilize domestic fuel prices.
The government also said in September that it would closely monitor the domestic market and work with refiners and shipping companies to prevent supply disruptions.
For an export-oriented economy such as South Korea, the issue extends beyond petrol stations. Oil and petroleum products are important inputs for transportation, petrochemicals, manufacturing and logistics.
South Korea Wants More Resilient Energy Supply
The planned reduction in Middle Eastern crude dependence is part of a wider effort to make South Korea’s supply chains less vulnerable to geopolitical shocks.
The September 23 strategy also includes plans to strengthen reserves of critical minerals, including rare earth elements. The government is looking beyond crude oil because recent disruptions have demonstrated that concentrated supply chains can become vulnerable when transportation routes or producing regions are affected.
This broader approach could influence how South Korean companies structure procurement over the coming years.
Instead of relying primarily on the cheapest or shortest supply route, companies may increasingly consider the geographic spread of suppliers, shipping flexibility and reserve availability when making long-term purchasing decisions.
That could increase some costs, particularly when alternative crude has to travel longer distances. But the government is clearly treating supply resilience as a strategic priority.
The Global Energy Market Is Being Rewired
South Korea’s policy shift is part of a wider change in global energy trade.
The current Middle East disruption has encouraged oil importers to seek alternative suppliers, while producers and shipping companies are adapting to longer and more complicated trade routes. Reuters has described the emerging system as a more dispersed but more expensive oil trade network.
For South Korea, the immediate priority is maintaining adequate supplies while avoiding excessive exposure to a single region.
The target of bringing Middle Eastern crude dependence below 50% by 2035 gives that strategy a long-term direction. The expansion of storage capacity and support for alternative imports are designed to complement that goal.
The policy will not eliminate South Korea’s reliance on Gulf oil. Middle Eastern producers remain major suppliers and are geographically important to Asian refineries. Instead, Seoul is building a wider import portfolio that can provide more options when geopolitical disruptions affect established routes.
Takeaways
- South Korea plans to reduce its Middle Eastern crude oil dependence to below 50% by 2035.
- Seoul plans to add 20 million barrels of oil reserve storage capacity as part of its energy-security strategy.
- The Middle East’s share of South Korean crude imports has already fallen from around 70% to about 50%, according to President Lee.
- The government is supporting alternative crude imports and strategic reserve swaps while monitoring disruptions around the Strait of Hormuz and Red Sea.
FAQ
Why is South Korea reducing its dependence on Middle Eastern oil?
South Korea is diversifying crude supplies after disruptions around major Middle Eastern shipping routes highlighted the risks of relying heavily on one region. The government wants a wider supplier base to reduce exposure to future geopolitical shocks.
What is South Korea’s target for Middle Eastern crude imports?
The government plans to bring the share of crude sourced from specific regions, including the Middle East, below 50% by 2035.
Is South Korea currently facing an oil shortage?
Government assessments in September said South Korean refiners had secured more than 90% of the crude needed for September and October based on previous-year levels. Officials said the short-term supply impact remained limited while continuing to monitor regional developments.
How is South Korea strengthening its oil security?
South Korea is diversifying crude imports, supporting additional shipping costs for non-Middle Eastern supplies, restarting strategic oil reserve swaps and planning an additional 20 million barrels of reserve storage capacity.
