South Korea will begin restricting naphtha exports from Friday amid growing supply shortages due to the Middle East situation, Seoul’s finance chief said Thursday.
S. Korea to enforce naphtha export restriction starting Friday: finance minister
SEOUL, Mar 26 (YONHAP/APP): South Korea will begin restricting naphtha exports from Friday amid growing supply shortages due to the Middle East situation, Seoul’s finance chief said Thursday.
According to the plan announced by Finance Minister Koo Yun-cheol during an emergency economic response meeting presided over by President Lee Jae Myung, the restriction will go into effect on Friday.
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.
South 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.
Separately, a ban on hoarding of urea and urea solution will also take effect starting Friday midnight,
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.
