Global Oil Prices Swing, Supply Chains Disrupted... Korea National Oil Corporation's 'Crisis Response Task Force' Takes Action

Escalating Geopolitical Risks from the Middle East
President Son Jooseok Activates Company-wide Emergency Response
"Dual Focus on Energy Security and Management Innovation"

With geopolitical tensions in the Middle East persisting for more than six months, instability in the global energy supply-demand balance continues. Disruptions such as the potential closure of the Strait of Hormuz have led to wild fluctuations in international oil prices and a freeze in supply chains, prompting countries worldwide to declare a state of emergency for energy security. In response, Son Jooseok, President of Korea National Oil Corporation, who took office in early March this year, has launched the company’s all-hands-on-deck crisis response structure known as the “Oil Crisis Response Task Force,” focusing all efforts on dealing with this unprecedented oil supply and demand crisis.

Son Jooseok, President of Korea National Oil Corporation, is inspecting a vessel carrying the corporation's overseas crude oil brought into the country on July 6. Korea National Oil Corporation

◆ Focus on Supply-Demand Stability: International Joint Stockpiling and Crude Oil Swaps= According to the Ministry of Trade, Industry and Energy on September 29, the average price of Dubai crude oil in September was USD 114.66 per barrel, up by USD 25.91 (29.2%) from the previous month's USD 88.75. Although this is a 10.8% drop from the peak of USD 128.52 in March, immediately after the outbreak of the Middle East conflict, it is still up 67.6% from February (USD 68.40), just before the conflict began. During this period, Dubai crude swung between USD 62 and USD 128 per barrel, showing extreme volatility.

With international oil prices swinging wildly due to the Middle East conflict and the risk of the Strait of Hormuz blockade, President Son shifted joint international stockpile volumes, which had previously been focused on facility leasing, to emergency priority purchase options, making these stocks immediately available to stabilize supply and demand. In addition, the corporation introduced the “Crude Oil Swap” system—swapping refiners’ in-transit oil and strategic reserves based on government-designed policies to prevent any disruption in supply. For the first time, overseas crude oil produced by the company was brought into Korea in emergencies. Through these efforts, Korea National Oil Corporation is recognized for helping stabilize oil supply even amidst supply instability triggered by the Middle East situation.

◆ Supporting Domestic Fuel Price Stabilization via “Affordably Priced Gas Stations” and Opinet= An official from the corporation stated, “To strengthen the corporation’s ‘energy security,’ the corporation is working to stabilize oil supply and demand while also enhancing public services by stabilizing domestic oil prices.” The official emphasized, “Self-operated affordable gas stations managed by the corporation played a role in dampening fuel prices during the supply crisis, and Opinet—the fuel price information platform—provides real-time prices for approximately 10,000 gas stations nationwide, serving not only as a public platform that supports government price stabilization policies and market monitoring, but also as a reliable information source.” For its contributions to establishing government energy policies and stabilizing the petroleum market, the corporation was awarded a presidential citation on September 1 by the Ministry of Data and Statistics as part of the “2026 Excellence in Statistical Work Promotion” commendations.

Korea National Oil Corporation Petroleum Storage Facility.

◆ Expanding Reserve Storage to 20 Million Barrels by 2030= Furthermore, Korea National Oil Corporation plans to expand its oil stockpiling capacity by approximately 20 million barrels by 2030, using these additional facilities to both increase domestic reserves and expand international joint stockpiles with oil-producing countries. Having recognized the need for constant readiness amid global geopolitical crises through this recent conflict in the Middle East, President Son is actively meeting with key stakeholders to persuade them of the urgency to swiftly execute this large-scale national project. This initiative is designed not only for short-term crisis response but also to elevate the national energy security system to a higher level.

In addition, the corporation undertook a complete organizational restructuring and HR innovation to fulfill the national policy goal of “public institution management innovation that supports growth and public well-being” and to restore public trust. Steps include strengthening stockpiling functions, establishing a new public projects division, and reorganizing overseas oil development to transform into a “public institution focused on energy security.” Based on President Son’s HR principle of “competency-based appointments regardless of gender or background,” key talent for leading the organization’s future have been appointed to appropriate positions, and next-generation managers are selected based on ability and performance, thus enacting responsible personnel decisions that reflect public expectations.

Korea National Oil Corporation Building Exterior

◆ Strengthening Stockpiling Functions and Reorganizing Overseas Development... Promoting AX Management Innovation= President Son is also focusing on financial performance by improving the cost structure and economic feasibility of oil development projects as a top priority, optimizing capital expenditures (CAPEX), and reducing unnecessary and excessive regular expenses. On the 28th, the corporation held the “2026 AI-Driven Work Innovation Competition” and President Son personally presented the top prize to an employee who proposed ways to improve the efficiency of stockpiling operations through AI.

An official from Korea National Oil Corporation stated, “While facing relentless waves in the form of the global energy crisis, we are turning the crisis into an opportunity to leap forward through stable oil supply management, price stabilization, and AI-powered (AX) management innovation for future growth.” The official further stated, “Korea National Oil Corporation will continue to serve as a key energy public institution steadfastly supporting the national economy, with a dual focus on unwavering energy security and management innovation.”

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