Korea's Energy Ministry, IEA launch initiative to shield Asia from supply shocks

Korea has joined hands with the International Energy Agency to build a framework protecting energy-vulnerable Asian nations from supply disruptions — from oil and energy shocks triggered by recurring wars and natural disasters.

The initiative begins by fortifying the response systems of Asian nations whose heavy reliance on imports leaves them hostage to geopolitical risk, and by charting a roadmap for those whose electrification has lagged.

Korea’s Ministry of Climate, Energy and Environment signed a memorandum of understanding on Thursday establishing the Resilient & Integrated Strategy for Energy Security in Asia, or RISE ASIA, an initiative designed to jointly assess conventional energy supply, resource security and power-grid stability, while strengthening the region's capacity to withstand future crises.

"There is a need for leadership in Southeast Asia to meet the electrification challenge, and the RISE ASIA program is unique in that it supports developing nations," Fatih Birol, the IEA's executive director, told reporters in central Seoul following the signing ceremony on Thursday.

"Korea being a major manufacturer of wires, cables and transformers is a big advantage to start with."

The IEA, founded in 1974 in the aftermath of that decade's oil crisis, coordinates energy security, market analysis and clean energy policy among its 32 member countries, most of which are members of the Organisation for Economic Cooperation and Development. The Paris-based agency also manages emergency petroleum reserves among members and issues policy recommendations during supply crises.

RISE ASIA builds on a proposal President Lee Jae Myung made at the Group of 7 summit in June, calling for stronger energy supply chain resilience across Asia, a response to what officials describe as an increasingly volatile global energy landscape.

Under the program, the two parties will jointly monitor oil, liquefied natural gas and clean-energy supply chains, as well as power-grid reliability, and build a shared crisis-response system incorporating early warning mechanisms and coordinated stockpiling.

Roughly 90 percent of the crude oil and liquefied natural gas (LNG) that transits the Strait of Hormuz is bound for Asia, leaving the region acutely exposed whenever passage through the strait is disrupted.

A second pillar of the initiative focuses on power infrastructure, as surging electricity demand from emerging industries has made grid stability and flexibility central to both industrial competitiveness and energy security.

Korea must also secure enough electricity for four new semiconductor plants in the Honam region.

"We will make a roadmap for developing countries for their electrification, and it will be decided with Korea how we reach those milestones for those countries to electrify their economies, and what kind of financial, economic and energy decisions need to be made," Birol said.

The duo also plans to establish an open policy dialogue platform to share progress and identify inclusive priorities, including improving energy access.

Under the current timeline, Korea's Environment Ministry and the IEA aim to finalize their cooperative structure by 2027, develop crisis-response protocols and identify priority projects through joint training by 2028, and begin full-scale implementation — including infrastructure development and energy poverty initiatives — from 2028 onward.

Birol also warned that wartime disruptions to energy markets, particularly LNG supply following an attack on Qatar, would tighten conditions further this winter.

"It will be even tighter because Europe, another importer like Asia, cut ties with Russia, and Europe is also going to import more LNG this year," he said. "It will be a harsh winter, as there may be competition between Europeans and Asians for LNG, which in turn may push prices even higher."

"My suggestion for the LNG imports that still remain to be imported is to diversify them as much as possible, not to get them from one big exporter," he said, adding that nations should move toward electrification, using as many renewables as possible, supported by nuclear power.

BY SARAH CHEA   [[email protected]]