SEOUL, March 26 — South Korea will begin restricting naphtha exports Friday amid growing supply shortages due to the West Asian situation, Seoul’s finance chief said Thursday, Yonhap News Agency reported.
According to the plan announced by Finance Minister Koo Yun-cheol during an emergency economic response meeting presided over by President Lee Jae Myung, the restriction will go into effect on Friday.
The move comes as domestic supply disruptions of naphtha, a key feedstock widely used in petrochemical and other industries, have increased following US and Israeli airstrikes on Iran.
South Korea imports around half of its naphtha through the Strait of Hormuz, a major Middle Eastern trade route, which has effectively been closed due to the war.
To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits, the finance ministry said.
“As the West Asian crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident,” Koo said.
Separately, a ban on hoarding of urea and urea solution will also take effect starting Friday.
The rules apply to importers, manufacturers and sellers, prohibiting them from holding more than 150 per cent of last year’s monthly average sales for more than seven days or refusing to sell without a valid reason. — Bernama-Yonhap
