Highlights:

• Seoul targets a major crude supply shift as Middle East exposure faces fresh scrutiny.
• Strategic oil reserves are set to expand, strengthening protection against future supply shocks.
• Critical minerals join the diversification drive, widening Korea’s energy-security push beyond oil.

Seoul Redraws Its Oil Supply Strategy

South Korea plans to reduce the share of crude oil sourced from the Middle East to 50% by 2035, marking a significant shift in energy policy after recent geopolitical disruptions exposed vulnerabilities in key supply routes.

The Industry Ministry outlined the target on 23 September 2026 as part of a new 10-year natural resources security plan. South Korea obtained about 70% of its crude imports from Middle Eastern suppliers in 2025, with much of those volumes transported through the Strait of Hormuz.

The strategy reflects a broader effort to make supply chains more resilient rather than simply reduce overall oil use. For one of Asia’s most import-dependent major economies, widening the supplier base could reduce exposure to regional conflict, shipping interruptions and sudden changes in crude availability.

Strategic Reserves Take Greater Priority

South Korea is also strengthening its emergency buffer. Under the plan, the government aims to increase crude oil stockpiles by around 20 million barrels by 2030. The roadmap additionally focuses on securing alternative condensate supplies, an important input for producing naphtha. This is particularly relevant to South Korea’s large petrochemical sector, which has faced tighter feedstock availability during Middle East disruptions.

Key vulnerabilities remain substantial:

• South Korea imports around 45% of its naphtha requirements.
• About 77% of those imported volumes typically come from the Middle East.
• Natural gas sourcing will also remain subject to diversification targets.

For gas, Seoul wants Middle Eastern dependence kept below 30% by 2035. The region accounted for about 20% of South Korea’s gas imports in 2025.

Critical Minerals Enter the Security Equation

Energy security is being expanded beyond hydrocarbons. The government plans to increase its list of critical minerals to 51 from 38, adding 10 rare-earth elements and germanium, which is used in strategically important technologies including semiconductors.

Outlook: Diversification Could Reshape Asian Crude Flows

South Korea’s policy signals a longer-term shift from supply efficiency toward supply resilience. Reaching the 2035 crude target would require refiners to deepen sourcing relationships outside the Middle East while managing differences in freight costs, crude grades and refinery compatibility.

For global oil markets, the transition could gradually redirect Korean demand toward a broader group of exporters. More importantly, the strategy demonstrates how geopolitical disruption around major shipping corridors is increasingly influencing long-term procurement, inventories and critical-resource planning across import-dependent Asian economies.

Note- All data presented is based on information available at the time of writing.

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