South Korea Targets 50% Cut in Middle East Oil Dependence by 2035

South Korea is seeking to reduce its dependence on Middle Eastern oil imports by 50% by 2035, following disruptions caused by the Iran war. The country currently obtains about 70% of its crude oil from the Middle East, with most supplies transported through the Strait of Hormuz.

The government plans to expand crude-oil stockpiles by about 20 million barrels by 2030 and target condensate, an ultra-light form of crude that is widely used to produce naphtha. Naphtha is a critical feedstock for South Korea's large petrochemical industry, which imports about 45% of the naphtha it consumes.

The government also aims to reduce its dependence on Middle Eastern natural-gas imports below 30% by 2035 and has broadened its plan to minerals, increasing its list of critical minerals to 51 from 38. This expansion reflects the growing overlap between energy security, industrial policy, and technology supply chains.