A notice board displays gasoline and diesel prices at a gas station in Seoul. Yonhap News
The South Korean government has reviewed its financial support measures for domestic oil importers as uncertainty over crude oil supply grows amid the prolonged Middle East war. The industry requested improved financing conditions and expanded tax support, while the government said it would examine ways to help diversify import sources and restructure supply chains.
According to the Ministry of Economy and Finance on Wednesday, the government held the “Second Oil Importer Financial Support Review Meeting” at the Government Complex Seoul on Monday to discuss such support measures. The meeting was attended by officials from the Export-Import Bank of Korea, the Korea National Oil Corporation, SK Energy, S-Oil, and HD Hyundai Oilbank. The meeting was arranged to share the outcomes of follow-up actions after the first meeting held last month and to review the crude oil supply situation, financial support status, and additional difficulties.
Following last month’s requests for securing crude oil and expanding financial supply, the industry made additional proposals this month, including improving financing conditions, supporting diversification of import sources, deferring tax payments and expanding tax support, and increasing the supply of government strategic petroleum reserves. In response, Moon Ji-sung, Deputy Minister for International Affairs, said, “Uncertainties remain, including potential disruptions in crude oil exports from Middle Eastern producers and the UAE’s withdrawal from the Organization of the Petroleum Exporting Countries (OPEC).” He added, “The Export-Import Bank of Korea plans to actively support Korean companies facing difficulties due to the Middle East war.”
Based on the proposals received at the first meeting, the Ministry of Economy and Finance plans to address the management difficulties of oil importers while reviewing with relevant agencies an expanded government role in the process of restructuring supply chains from an energy security perspective.