The South Korean government will begin importing crude oil from Argentina next year. Following a pilot purchase by HD Hyundai Oilbank this year, both governments have agreed to support stable imports and gradually increase the volume.
Wi Sung-lak, the National Security Office chief, revealed this information during a briefing in Buenos Aires on July 31.
He stated, "While the initial volume is not large, it marks an important beginning. Argentina's capacity for oil production and export is growing, which opens up more opportunities for cooperation in the future."
According to the government, domestic companies have conducted a pilot import of Argentine crude oil this year, with plans to commence regular imports next year. The two governments will continue discussions to ensure the scheduled oil imports proceed smoothly and to expand future purchase volumes.
HD Hyundai Oilbank is the company that made the first purchase this year. In a written interview with the Spanish news agency EFE prior to a summit, President Lee Jae-myung noted that HD Hyundai Oilbank had purchased Argentine crude oil for the first time this year, amounting to approximately 880,000 barrels. However, it is yet to be determined whether other domestic refiners will participate in next year's imports.
The government's focus on Argentine crude oil stems from its high dependence on the Middle East. South Korea imports about 70% of its crude oil from that region. Instability in the Middle East or disruptions in the Strait of Hormuz could directly impact the country's energy supply.
Argentina can export oil via the Atlantic, making it less susceptible to the effects of major maritime chokepoints like the Strait of Hormuz and the Red Sea. Although the initial import volume is small, securing a new supply base in South America is significant for energy security, according to Wi.
Following the summit, the two countries agreed to reactivate the Energy Resources Cooperation Committee to manage follow-up actions. This committee will focus on discussions not only about the import of Argentine crude oil but also on natural gas, nuclear energy, and key minerals such as lithium and copper.
Wi emphasized, "Securing diverse oil supply lines is the direction we need to pursue following the situation in the Middle East, and we will strive to secure more Argentine crude oil."
Additionally, during the summit, the two countries finalized a double taxation agreement to reduce the tax burden on South Korean companies operating in Argentina. They also agreed to promptly resume negotiations on the Korea-Mercosur trade agreement to enhance access for South Korean businesses in the South American market.
In particular, to expedite the entry of K-food into the Argentine market, both countries will work towards designating South Korea as a 'high hygiene monitoring country' in discussions.
The two nations will reactivate the Economic Joint Committee and the Energy Resources Cooperation Committee to manage the follow-up actions from the summit agreements. The Economic Joint Committee will address trade and investment issues, while the Energy Resources Cooperation Committee will explore cooperation in lithium, copper, crude oil, gas, and nuclear energy.
Furthermore, the two countries will push for the swift conclusion of a mutual recognition agreement for driver's licenses and expand cooperation in culture, education, and human exchanges. They also plan to identify new collaborative projects in defense, space, Antarctica, and health.
Wi added, "Both leaders shared a commitment to quickly deliver tangible results that the public can feel through a focus on efficiency and speed."
* This article has been translated by AI.
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