Korean Media: 7 South Korean Oil Tankers Trapped in the Strait of Hormuz

Government Party and Business Community Hold Emergency Meeting, Business Sector "Please Ask the Government for Support" ... Nearly Full Week's Usage of Chip Helium Supply is Running Out, Electricity Prices May Rise

According to a report on the 5th, if the United States and Israel were to go to war with Iran, 7 oil tankers supplying crude oil to South Korean refining companies would be trapped near the Strait of Hormuz, unable to move. It is reported that each ship can carry up to 2 million barrels of crude oil, equivalent to one day's oil consumption in South Korea, and the total capacity of 7 ships is close to seven days' oil consumption in South Korea.

On the 5th, at an emergency meeting between the Democratic Party and the business community held in the National Assembly, Kim Yong-pyeo, the chief of the ruling party of the National Assembly's Committee on Foreign Affairs and Unification (Foreign Affairs Committee), introduced the above situation.

Kim Yong-pyeo said, "Each ship carries as much as 2 million barrels of crude oil, equivalent to one day's oil consumption in South Korea," and "In the event of potential problems in national oil consumption, the business community urged the government to take measures."

According to the Foreign Affairs Committee and others, seven South Korean oil tankers are currently unable to pass through the strait due to the deteriorating situation in the Strait of Hormuz and are stranded locally. According to a source from the business sector, "The seven ships are stuck near the strait and cannot proceed into the route back to South Korea. If it becomes long-term, the country's oil supply may face problems."

It is reported that during the meeting, the petrochemical and refining industry requested the ruling party: "A support measure at the government level is needed."

Currently, the war between the United States, Israel, and Iran is spreading to Saudi Arabia, Dubai, Abu Dhabi, and other parts of the UAE, as well as Turkey. The public is concerned that if the situation worsens and the logistics supply becomes unstable, not only energy such as crude oil and natural gas, but also strategic sectors of the country - the chip industry will be directly affected. Because 90% of the essential materials for producing chips, helium, is imported from the Middle East.

The public is worried about the disruption of chip production affecting price competitiveness. Kim Yong-pyeo said, "The chip industry is worried that rising oil prices will push up domestic electricity prices, which will eventually lead to increased costs and could significantly affect price competitiveness."

Kim Yong-pyeo specifically pointed out, "The essential material for chip production, helium, is 90% imported from the Middle East, and (the industry) is worried about possible disruptions in chip production." In addition, if the 7-8 data center construction projects centered around the UAE are delayed, the export volume of South Korean chips will also decrease.

Additionally, the business community unanimously called for the swift handling of the "South Korea-US Strategic Investment Management Special Act" (Special Act on Investment to the US), which is required to fulfill the South Korea-US tariff agreement.

Currently, the ruling and opposition parties have agreed to hold a plenary session of the National Assembly on the 12th to handle the special act on investment to the US, and are accelerating the review of the bill.

At the meeting, Jeong Tae-ho, chairman of the review subcommittee of the special committee on investment to the US and a member of the Democratic Party, stated, "We completed approximately two-thirds of the bill review yesterday, and we should be able to complete it today." He also said, "After completing it today, it will be submitted to the special committee on the 9th and passed in the plenary session on the 12th."

Source: Chosun Ilbo

Original article: toutiao.com/article/1858850108998668/

Statement: This article represents the views of the author himself.