The War Reshapes Korea's Crude Oil Imports: Middle Eastern Share Drops, U.S. Share Rises

Accelerated Diversification of Import Sources Amid Hormuz Risk
"Uninterrupted Oil Supply Over Cheap Oil"
A Shift in Energy Security Strategy

Yonhap News Agency

As concerns over a prolonged war in the Middle East and the potential blockade of the Strait of Hormuz become reality, the map of South Korea’s crude oil imports is changing rapidly. The decades-long, Middle East-centric procurement structure is being shaken, with the share of non-Middle Eastern crude oil—such as from the United States and Africa—surpassing half for the first time in history. Analysts say this signals the full-fledged arrival of an era where supply chain stability matters more for economic security than international oil prices.

According to Korea National Oil Corporation on May 31, the share of non-Middle Eastern crude oil among imports between May and July of this year reached 51.5%. This is a 19.6 percentage point increase compared to 31.9% during the same period last year.

In contrast, the share of Middle Eastern crude dropped from 69.1% to 48.5% over the same period, a 20.6 percentage point decrease. It is considered a rare development for the proportion of Middle Eastern crude in South Korea’s import structure to fall below half.

By region, North and South America showed remarkable growth. The share of crude oil from the Americas rose from 23.1% last year to 35.6% this year. The share from Africa also expanded from 2.2% to 8.3%. Imports from Asia increased from 5.0% to 7.4% as well.

This shift signifies more than just a simple adjustment of import sources. Until now, South Korea has heavily relied on the Middle East—including Saudi Arabia, the UAE, Kuwait, and Iraq—for its crude oil supply. Middle Eastern crude has been considered virtually irreplaceable due to its price competitiveness and compatibility with domestic refineries.

However, as the Middle East war and the threat of a Strait of Hormuz blockade persist, both the government and the refining industry have begun prioritizing supply chain stability above all else. In fact, the government is supporting the expansion of crude oil imports from the United States, Central and South America, and Africa, while also strengthening joint stockpiling projects with the UAE and improving systems for utilizing stockpiled oil.

Notably, there is a strong possibility that this change will not be temporary. Since the U.S. shale revolution, the global crude oil market has been shifting from a Middle East-centered system to a multipolar one. Furthermore, repeated geopolitical shocks—including the Russia-Ukraine war and Middle East conflicts—are making energy security a core component of national competitiveness.

Whereas the previous strategy for crude oil procurement was to secure the cheapest oil available, the focus has now shifted to ensuring that crude oil imports continue uninterrupted under any crisis. In recent briefings on the Middle East situation, the South Korean government has cited the volume of secured oil, stockpiling levels, and diversification of import sources as key achievements.

In the domestic energy industry, surpassing a 50% share for non-Middle Eastern crude is seen not as a mere statistical change but as a symbolic event marking a policy shift in South Korea’s energy strategy. An industry official stated, “In the past, Middle East volatility was approached from a price perspective, but now we are looking at it from the standpoint of supply chains and national security. Like semiconductors and critical minerals, crude oil has become an economic security asset to be managed accordingly.”

This content was produced with the assistance of AI translation services.