South Korea to Release Urea Reserves Amid Supply Concerns and Middle East Tensions

South Korea is taking proactive measures to ensure the stable supply of essential automotive fluids, specifically urea and urea solution, by releasing public reserves. Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced that while the nation's overall urea stock is adequate for approximately three months, the government is moving to preemptively address potential imbalances in corporate inventories.

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To alleviate inventory shortages for some companies, we will proceed with releasing public reserves of urea and urea solution by the end of this month.

This initiative is part of a broader strategy to mitigate the economic fallout from the escalating conflict in the Middle East. Deputy Prime Minister Choo highlighted the conflict as the primary risk to the global economy, citing its potential to exacerbate inflation through high oil prices, disrupt supply chains, and increase financial market volatility. The government is committed to maintaining a robust emergency economic response system to navigate these challenges.

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The Middle East conflict is currently the biggest risk factor for the global economy, impacting the economy through various channels such as price pressure from high oil prices, supply chain disruptions, and financial market uncertainty.

In addition to securing domestic supply chains, South Korea is actively pursuing international cooperation to ensure the stable procurement of key commodities like crude oil and naphtha. A critical focus is placed on the safety of Korean vessels transiting the Strait of Hormuz, with a 24-hour technical support system in place. The government is also streamlining the resolution of supply chain issues reported through a national hotline, employing regulatory flexibility and proactive administrative measures.

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The ability to respond to the Middle East conflict is a nation's competitiveness right now.

Furthermore, the government is prioritizing the swift execution of supplementary budget measures, including support for high oil price impacts. With over 10.5 trillion won designated for rapid execution, including relief funds for high oil prices starting late April, the aim is to ensure at least 85% of these funds are disbursed within the first half of the year. This comprehensive approach reflects South Korea's determination to safeguard its economy against both domestic and international uncertainties.

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We will strengthen international cooperation to secure key items such as crude oil and naphtha and stabilize supply chains, and actively support our ships to safely pass through the Strait of Hormuz by operating a 24-hour technical support system.