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Seoul approves measures to strengthen preparedness for key resource supply disruptions

Published: 14 Jan. 2025, 16:45

The logo of t he Ministry of Trade, Industry and Energy [YONHAP]

Korea has approved an enforcement decree to strengthen the country's preparedness for supply disruptions affecting key resources, the Ministry of Trade, Industry and Energy said Tuesday.

The enforcement decree on the Special Act on National Resources Security was passed during a Cabinet meeting held on the day, according to the Industry Ministry.

The decree is designed to provide detailed measures under the law, which aims to enhance stability in the supply of critical commodities, including oil, natural gas, coal and hydrogen.

The move comes as Korea seeks to ensure a stable supply of vital resources amid growing concerns over the weaponization of resources, driven by geopolitical tensions from the Russia-Ukraine war and the Middle East crisis.

Korea relies on imports for about 90 percent of its energy needs.

Under the enforcement decree, the government can issue a four-tier alert in the event of a supply crisis for key natural resources and take measures, such as importing affected products, releasing reserves and imposing price caps.

Korea will also draft basic resource security plans every five years and establish an interagency committee led by the industry minister.

The government will instruct state-run energy companies, including the Korea National Oil Corp. and Korea Gas Corp., to expand their resource stockpiles to be used in case of emergencies, and to enhance their procurement capacity.

Yonhap