South Korea has re-launched support for non-Middle Eastern crude oil imports. The Ministry of Trade, Industry and Energy of the country has announced that these subsidies are being revived to strengthen the diversity of oil sources and meet domestic market needs, especially as demand for tankers is on the rise.
Details of the New Subsidies
The South Korean government has announced that it will fully cover the additional transportation costs for buyers of non-Middle Eastern crude oil. This program was previously implemented between April and June and led to significant changes in oil supply sources. During that time, crude oil imports from the United States increased by 14.2% compared to the previous year, and imports from Canada grew by 160.8%. Additionally, imports from Ecuador showed an increase of 422.1% and oil purchases from Africa rose by 156.7%.
Read more: Trump: The U.S. May Stay in Iran and Keep Oil for Itself
Reducing Dependence on Middle Eastern Oil
President Yoon Suk-yeol recently stated that South Korea has reduced its dependence on Middle Eastern crude oil from about 70% to around 50%. These changes have primarily occurred due to the subsidies provided for transporting oil over long distances. The use of non-Middle Eastern crude oil contributes to increasing maritime distances to one of Asia's largest oil refining centers, while access to tankers is currently severely limited.
Additionally, the South Korean government resumed its strategic crude oil reserve replacement program on August 24 and announced that it may continue this action beyond October if necessary. These plans reflect South Korea's willingness to strengthen its oil resources and reduce dependence on the Middle East in order to ensure the country's energy security.
Read more: The tanker shipment 'Seyed Kamal' was sanctioned on September 11, 2026 · New sanctions on tankers in the path of Iran's oil exports
