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Korea to enforce naphtha export restriction starting Friday: Finance minister

Published: 26 Mar. 2026, 17:09

SHIN MIN-HEE
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Finance Minister Koo Yun-cheol, center, speaks to reporters at the government complex in central Seoul on March 26. [YONHAP]

Korea will restrict naphtha exports starting Friday as the Iran war squeezes supply and rattles domestic industries, the government said Thursday.

The plan was announced by Finance Minister Koo Yun-cheol during an emergency economic response meeting presided over by President Lee Jae Myung the same day.

The move comes as domestic supply disruptions of naphtha, a key feedstock widely used in petrochemical and other industries, have increased following U.S. and Israeli airstrikes on Iran.

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.

To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits, the finance ministry said.

"As the Middle East crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident," Koo said.

Separately, a ban on hoarding of urea and urea solution will also take effect starting Friday. The government will also expand fuel tax cuts to ease the burden of rising oil prices and launch a nationwide campaign to reduce the use of disposable products.

The rules apply to importers, manufacturers and sellers, prohibiting them from holding more than 150 percent of last year's monthly average sales for more than seven days or refusing to sell without a valid reason.

BY SHIN MIN-HEE, YONHAP [[email protected]]