The Ministry of Trade, Industry and Energy announced this change on June 30 after consultations with relevant agencies.
The resource security alert operates on a four-tier system: 'interest,' 'caution,' 'warning,' and 'serious.' Following the outbreak of war in the Middle East, the government had progressively raised the alert levels due to increased supply instability for crude oil and natural gas. The crude oil alert was elevated to 'warning' in April, while the natural gas alert remained at 'caution.'
This adjustment reflects the government's assessment that conditions for crude oil supply have improved compared to previous levels. According to the ministry, crude oil supplies for July are secured at over 100% of the average, and naphtha supplies are over 95%. Additionally, over 90% of crude oil imports for August have been secured.
The government confirmed that six of the seven Korean oil tankers that were in the Persian Gulf prior to the outbreak of the Middle East war have now passed through the Strait of Hormuz and are heading to South Korea. The Joint Maritime Information Center (JMIC), which provides international shipping safety information, has also reported a lower risk assessment for navigation in the Strait of Hormuz.
The situation for natural gas is considered relatively stable. Despite Qatar's declaration of force majeure, alternative supplies have been secured through spot purchases and overseas resource development, contributing to stable supply conditions. International prices have also stabilized after the initial surge following the outbreak of the war, which played a role in lifting the alert.
However, the government has not fully lifted the crude oil alert, acknowledging that tensions in the Middle East have not been completely resolved. Uncertainties surrounding the Strait of Hormuz remain, and the potential for supply disruptions due to damage to production and transportation facilities in oil-producing countries cannot be ruled out.
In line with the adjustment of the alert level, the government will also end some emergency support measures that have been in place. The expansion of refunds for the oil import tax to diversify crude oil sources, the naphtha import price support system, and the strategic oil reserve swap program will conclude as scheduled on June 30, given the stabilization of market conditions.
Conversely, the management system for the petrochemical sector, where supply chain uncertainties persist, will remain in place. Regulations on naphtha export restrictions and supply adjustments will continue until the existing sunset date of August 26, and the ban on hoarding raw materials for petrochemical products and emergency supply adjustments will also continue for the time being.
The government plans to closely monitor the energy supply situation and the geopolitical situation in the Middle East even after the alert level has been eased. Relevant agencies, including the Korea National Oil Corporation, Korea Gas Corporation, and Korea Oil Management Corporation, will collaborate with refiners and direct importers of natural gas to check daily supply conditions and continue monitoring the oil distribution market.
Minister of Trade, Industry and Energy Kim Jeong-kwan stated, "We will thoroughly manage supply and price trends until the resource security alert is completely lifted. Even if the situation in the Middle East normalizes in the future, we will continue to implement supply chain stability policies, such as diversifying import sources and strengthening reserve capabilities, to enhance resource security."
* This article has been translated by AI.
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