(2nd LD) S. Korea to enforce naphtha export restriction starting Fri. | Yonhap News Agency

## Summary
OK (ATTN: UPDATES with industry ministry's press briefing in paras 2, 6-10; CHANGES attribution in headline and lead; ADDS photo) SEOUL, March 27 (Yonhap) -- South Korea will begin restricting naphtha exports Friday amid growing supply shortages triggered by the conflict in the Middle East. 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. The industry ministry said roughly 11 percent of domestically produced naphtha is currently exported, and those volumes will be redirected to domestic buyers under the new measures. "The goal is to keep available supplies within the country," Yang Ki-wook, director general of the ministry's bureau for industrial resource security, said during a press briefing. "Exports of certain heavy naphtha varieties not used by domestic plants may still be allowed." A petrochemical industrial complex in the southwestern city of Yeosu is seen in this file photo taken March 9, 2026. (Yonhap) Export plans submitted to the ministry will be reviewed to determine whether the naphtha can be utilized by domestic petrochemical facilities before any approval is granted. Korea likely to face LNG price volatility due to suspended supply from Qatar: officials (LEAD) Gov't reviewing naphtha export restrictions amid Mideast supply disruptions: officials (LEAD) Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices Keywords #naphtha export ban Articles with issue keywords Most Liked Netflix, BTS to turn Seoul into world's 'biggest watch party' 'BTS: The Return' captures brotherhood under 'heavy crown': director (3rd LD) About 40,000 fans gather for BTS comeback concert in downtown Seoul BTS to stage concert in Seoul's Gwanghwamun to mark long-awaited return (LEAD) BTS stages concert in Seoul's Gwanghwamun to mark long-awaited return Most Saved Netflix, BTS to turn Seoul into world's 'biggest watch party' 'BTS: The Return' captures brotherhood under 'heavy crown': director Downtown Seoul to enter security lockdown for massive crowd at BTS concert (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot BTS to stage concert in Seoul's Gwanghwamun to mark long-awaited return Most Viewed All Categories Iran's top envoy says S.

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(ATTN: UPDATES with industry ministry's press briefing in paras 2, 6-10; CHANGES attribution in headline and lead; ADDS photo)
SEOUL, March 27 (Yonhap) -- South Korea will begin restricting naphtha exports Friday amid growing supply shortages triggered by the conflict in the Middle East.
The Ministry of Trade, Industry and Resources announced Thursday the restriction will go into effect immediately after it is published in the official gazette at midnight Friday and remain in place for five months.
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.
A petrochemical industrial complex in the southwestern city of Yeosu is seen in this file photo taken March 26, 2026. (Yonhap)
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.
To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits.
"As the Middle East crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident," Finance Minister Koo Yun-cheol said during an emergency economic meeting presided over by President Lee Jae Myung to discuss the issue.
The industry ministry said roughly 11 percent of domestically produced naphtha is currently exported, and those volumes will be redirected to domestic buyers under the new measures.
"The goal is to keep available supplies within the country," Yang Ki-wook, director general of the ministry's bureau for industrial resource security, said during a press briefing. "Exports of certain heavy naphtha varieties not used by domestic plants may still be allowed."
A petrochemical industrial complex in the southwestern city of Yeosu is seen in this file photo taken March 9, 2026. (Yonhap)
Export plans submitted to the ministry will be reviewed to determine whether the naphtha can be utilized by domestic petrochemical facilities before any approval is granted.
Asked whether the restrictions could spark trade disputes, Yang dismissed the concerns. "We believe the likelihood of this export restriction measure becoming a trade issue is low," he said.
Separately, a ban on hoarding of urea and urea solution will also take effect starting Friday.
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.
khj@yna.co.kr
(END)
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(2nd LD) S. Korea to enforce naphtha export restriction starting Fri.

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## Expert Analysis

### Merits
- Korea's Kim welcomes Belarusian President Lukashenko in Pyongyang: KCNA U.S. official says 'pretty extensive process' in progress for S.

### Areas for Consideration
- To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits. "As the Middle East crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident," Finance Minister Koo Yun-cheol said during an emergency economic meeting presided over by President Lee Jae Myung to discuss the issue.
- Asked whether the restrictions could spark trade disputes, Yang dismissed the concerns. "We believe the likelihood of this export restriction measure becoming a trade issue is low," he said.
- Korea likely to face LNG price volatility due to suspended supply from Qatar: officials (LEAD) Gov't reviewing naphtha export restrictions amid Mideast supply disruptions: officials (LEAD) Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices Lee urges cooperation on energy-saving efforts, pledging no change in electricity prices Keywords #naphtha export ban Articles with issue keywords Most Liked Netflix, BTS to turn Seoul into world's 'biggest watch party' 'BTS: The Return' captures brotherhood under 'heavy crown': director (3rd LD) About 40,000 fans gather for BTS comeback concert in downtown Seoul BTS to stage concert in Seoul's Gwanghwamun to mark long-awaited return (LEAD) BTS stages concert in Seoul's Gwanghwamun to mark long-awaited return Most Saved Netflix, BTS to turn Seoul into world's 'biggest watch party' 'BTS: The Return' captures brotherhood under 'heavy crown': director Downtown Seoul to enter security lockdown for massive crowd at BTS concert (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot BTS to stage concert in Seoul's Gwanghwamun to mark long-awaited return Most Viewed All Categories Iran's top envoy says S.

### Implications
- OK (ATTN: UPDATES with industry ministry's press briefing in paras 2, 6-10; CHANGES attribution in headline and lead; ADDS photo) SEOUL, March 27 (Yonhap) -- South Korea will begin restricting naphtha exports Friday amid growing supply shortages triggered by the conflict in the Middle East.
- The Ministry of Trade, Industry and Resources announced Thursday the restriction will go into effect immediately after it is published in the official gazette at midnight Friday and remain in place for five months.
- To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits. "As the Middle East crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident," Finance Minister Koo Yun-cheol said during an emergency economic meeting presided over by President Lee Jae Myung to discuss the issue.
- The industry ministry said roughly 11 percent of domestically produced naphtha is currently exported, and those volumes will be redirected to domestic buyers under the new measures. "The goal is to keep available supplies within the country," Yang Ki-wook, director general of the ministry's bureau for industrial resource security, said during a press briefing. "Exports of certain heavy naphtha varieties not used by domestic plants may still be allowed." A petrochemical industrial complex in the southwestern city of Yeosu is seen in this file photo taken March 9, 2026. (Yonhap) Export plans submitted to the ministry will be reviewed to determine whether the naphtha can be utilized by domestic petrochemical facilities before any approval is granted.

### Expert Commentary
This article covers naphtha, korea, bts topics. Notable strengths include discussion of naphtha. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 749.