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Gov't to temporarily designate naphtha as economic security item amid supply woes

Published: 18 Mar. 2026, 11:11

Finance Minister Koo Yun-cheol speaks during a meeting of economy-related ministers at the government complex in Seoul on March 18. [YONHAP]

The government will temporarily designate naphtha as an economic security item following supply shortages due to the ongoing crisis in the Middle East, Finance Minister Koo Yun-cheol said Wednesday.

Korea imports more than half of its naphtha through the Strait of Hormuz, which has effectively been closed due to heightened regional tensions. The designation will allow companies to receive government support related to supply chain stability.

"We will closely monitor naphtha supply trends and difficulties faced by companies, and take proactive measures, such as securing alternative import sources and restricting exports," Koo said during a meeting of economy-related ministers.

The government will expand financial support for affected companies by 1.5 trillion won ($1 billion), the minister said.

The support will include assistance with higher costs for alternative imports and preferential interest rates for companies handling high-risk economic security items.

The minister said the government will also swiftly implement all available policy tools, such as a supplementary budget, following the already enforced oil price cap system.

Yonhap