Trade Minister Discusses Supply Chain Diversification, Possibility of Ending Oil Price Cap

Minister of Trade, Industry and Energy Kim Jung-kwan announced that the government will re-evaluate the need for energy supply chain diversification and the introduction of an oil price cap system. This move aims to overcome structural vulnerabilities related to dependence on energy transport routes that could impact the Korean economy in the event of unforeseen circumstances such as wars in the Middle East. Minister Kim stated that he would expand the proportion of US crude oil imports to diversify supply chains, using the Middle East conflict as an impetus. He added that efforts to diversify transport routes and increase imports of non-Middle Eastern crude oil will continue even after the war concludes.

Furthermore, Minister Kim acknowledged that the 'oil price ceiling' system, which intervened in market prices, is incompatible with a market economy. He expressed a stance to terminate the system in the near future, emphasizing that it was a temporary measure designed to respond to abnormal wartime conditions and that it would be advisable to end it immediately once the situation stabilizes.

The Enforcement Decree for the Act on Strengthening and Supporting the Competitiveness of the Petrochemical Industry is set to be promulgated this week, with related systems to be implemented. The Ministry of Trade, Industry and Energy has conveyed that it includes support for business restructuring and regulatory special provisions.

Minister Kim announced that investment projects with the US, stemming from a bilateral customs agreement, are proceeding smoothly. The 'Korea-US Strategic Investment Corporation,' tasked with managing investments totaling $350 billion, is scheduled for an official launch in June. Minister Kim added that the corporation's launch would serve as a testament to Korea's reliability as a nation that fulfills its commitments through action.