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🇰🇷South Korea & the Strait of Hormuz

South Korea imports virtually all of its oil, with roughly 70–80% transiting the Strait of Hormuz. As the world’s fifth-largest oil importer, a Hormuz disruption poses an existential threat to its energy security.

Energy Profile

Oil Consumption
~2.6 million barrels/day
Hormuz Dependency
70–80% of oil imports
Key Suppliers
Saudi Arabia, Kuwait, Iraq, UAE, Qatar
Strategic Reserves
~90 days (government reserves)
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Key Facts

  • World’s fifth-largest oil importer and major petrochemical producer
  • Home to the world’s largest single-site oil refinery (SK Energy, Ulsan)
  • Second-largest LNG importer globally
  • Major shipbuilding nation — economically tied to global shipping
  • Petrochemical exports are a major economic driver

Vulnerabilities

  • Zero domestic oil production creates total import dependency
  • Highly concentrated supplier base in the Persian Gulf
  • Petrochemical sector (6% of GDP) relies directly on Gulf feedstock
  • Peninsula geography limits overland energy import options

Mitigations

  • Government strategic petroleum reserve of approximately 90 days
  • Major nuclear power capacity (about 30% of electricity)
  • Pursuing LNG diversification with US and Australian suppliers
  • Joint oil stockpiling agreements with other IEA members
  • Expanding renewable energy targets under carbon neutrality plan
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Historical Context

South Korea’s rapid industrialization from the 1960s onward was powered by cheap Middle Eastern oil. The 1979 oil shock caused GDP contraction and prompted the government to build strategic reserves and invest in nuclear power. Today, Korea’s massive refining and petrochemical sector is both an economic strength and a vulnerability — it adds value to crude oil imports but magnifies the impact of any supply disruption.

Other Affected Regions