South Korea's 70-Year Dream of Becoming an Oil Producer Falters Again

South Korea's ambition to become an oil-producing nation, a dream pursued for nearly 70 years, has been marked by repeated failures and dashed hopes.

The nation's first foray into oil exploration began in 1959 in Haenam County, South Jeolla Province. Geologists discovered sedimentary rock layers with high potential for oil and natural gas, leading to drilling operations that yielded some signs of oil but no significant discoveries.

In 1978, the government intensified its efforts by launching a joint development project with Japan in the "7th Block" south of Jeju Island. However, this endeavor has languished for nearly five decades without confirming oil reserves or being formally abandoned.

Exploration efforts in the 1970s and 1980s by major overseas oil companies in the East and South Sea basins also failed to find oil, though a notable success came in 1998 with the discovery of an economically viable natural gas field in the East Sea, which began commercial production six years later.

The most recent high-profile attempt was the "Daewanggorae Project" under the Yoon Suk-yeol administration. In June 2024, then-President Yoon announced a high probability of up to 14 billion barrels of oil and gas reserves. However, the Korea National Oil Corporation later confirmed the project's lack of economic viability, resulting in substantial losses.

Despite these setbacks, the government and the Korea National Oil Corporation have not entirely abandoned the possibility of oil and gas reserves in deep-sea areas of the East Sea, including the Ulleung Basin. The potential for joint development in the 7th Block also remains open. Efforts to enhance energy security and reduce import dependency through investments in overseas oil field development are ongoing.