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Seoul to ban hoarding of petrochemical feedstocks amid Iran war

Published: 14 Apr. 2026, 21:48

A petrochemical industrial complex in Yeosu, South Jeolla [NEWS1]

Korea will ban the hoarding of key petrochemical feedstocks and products starting Wednesday as the Iran war raises the risk of further supply disruptions.

The ban will be issued and enforced from midnight, the Ministry of Trade, Industry and Resources and the Ministry of Finance and Economy said in a joint statement on Tuesday.

Supply disruptions are already starting to hit parts of the petrochemical market, as rising naphtha prices driven by Middle East tensions push up costs, squeeze production and heighten worries about hoarding.

The measure covers seven naphtha-derived base feedstocks : ethylene, propylene, butadiene, benzene, toluene, xylene and other light oil fractions.

Companies will be barred from holding inventories of the seven feedstocks at more than 80 percent of the level held during the same period last year in the 30 days before an inspection begins.

The government said it may expand the restrictions to items derived from the base feedstocks if they are additionally deemed at risk of supply disruptions.

It may also order emergency adjustments to production, shipments and sales of the affected items if supply concerns persist despite the measures, officials said.

Yonhap