Gov't mulls naphtha export restrictions in face of supply shortages due to Middle East conflict
Published: 24 Mar. 2026, 13:57
![LG Chem's Yeosu Naphtha Cracking Center facility in South Jeolla [LG CHEM]](https://koreaseafood.online/data/photo/2026/03/24/e1547194-7ead-4ddb-8c43-5c9a574f5afa.jpg)
LG Chem's Yeosu Naphtha Cracking Center facility in South Jeolla [LG CHEM]
"Related ministries are preparing for the implementation of naphtha export restrictions," Yang Ghi-wuk, deputy minister for trade, industry and resource security, said in a daily briefing on resource supplies amid the Mideast crisis.
The preparations come as the country is seeing increasing disruptions in naphtha supplies following the U.S. and Israeli airstrikes against Iran late last month, with Yeochun NCC and other companies announcing "force majeure" for some of their products due to naphtha shortages. Force majeure refers to the occurrence of an unforeseeable and uncontrollable event that prevents a company from fulfilling a contract.
Korea imports around half of its naphtha through the Strait of Hormuz, a major Middle Eastern trade route, which has effectively been closed due to the war.
"In case [the supply shortage] situation prolongs, we are also preparing for an emergency supply adjustment order," Yang said.
On Monday, LG Chem also suspended operations at its ethylene production facility in the southwestern city of Yeosu due to disruptions in naphtha supply. Ethylene is produced by cracking naphtha.
Last week, the government temporarily designated naphtha as an economic security item to better stabilize the supply and support affected companies.
Yonhap
with the Korea JoongAng Daily
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