South Korea Finance Ministry Holds Emergency Meeting With Oil Importers on Supply Risks
Summary
- The Ministry of Finance and Economy said it held a financial support review meeting with oil importers and related agencies to respond to disruptions in oil supplies stemming from the Middle East.
- Oil importers said they were concerned that volatility in international oil prices and disruptions to supplies of key raw materials would deepen business uncertainty, and requested expanded policy financing and broader financial support for raw-material purchases.
- The government said it will pursue supply stabilization measures in parallel, including swift financial support through the Export-Import Bank of Korea’s crisis-response special program and liquidity support through cooperation with Korea National Oil Corp.
Forecast Trend Report by Period
Finance ministry reviews financial support with companies
Move aims to preempt Middle East-driven disruptions to oil supplies
South Korea’s Ministry of Finance and Economy held a meeting on July 8 with oil importers and related agencies to review financial support, chaired by Moon Ji-sung, director-general for international economic management.
The meeting was convened to assess the impact on crude supply from a blockade of the Strait of Hormuz linked to the war in the Middle East and to discuss support measures. Attendees included the Export-Import Bank of Korea, Korea National Oil Corp., SK Energy, S-Oil and HD Hyundai Oilbank.
Oil importers raised concerns that disruptions to supplies of key raw materials such as crude oil and naphtha could heighten business uncertainty. They urged the government to respond preemptively to prevent conditions from worsening.
They specifically requested a stable supply of policy financing for affected companies until international oil prices stabilize, as well as expanded financial support for raw-material purchases. They also called for broader assistance in securing alternative import sources.
Moon said oil supply conditions could ease somewhat following a ceasefire announced that day and the temporary lifting of the Strait of Hormuz blockade. Still, uncertainty over future developments remains, making it necessary to keep monitoring the impact on South Korea’s economy.
The government will work closely with related institutions to review oil supply conditions and the status of financial support, while ensuring needed assistance is provided in a timely manner, he added.
Separately, the government requested swift financial support through the Export-Import Bank of Korea’s crisis-response special program to help resolve companies’ difficulties. It also plans to pursue supply-stabilization measures in parallel, including liquidity support to help secure crude oil through cooperation between the export-import bank and Korea National Oil Corp.
Lee Jung-woo, Hankyung.com reporter krse9059@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
