SEOUL (Reuters) – A South Korean vice industry minister expressed concerns on Monday about the potential impact on the country’s trade following recent U.S. strikes on Iran.
“As the Middle East situation enters a new phase due to the U.S. airstrike on Iran’s nuclear facilities, there are concerns about the impact on our exports and imports,” first vice industry minister Moon Shin-hak said at a meeting to monitor monthly exports, according to the ministry.
South Korea, as Asia’s fourth-largest economy, heavily relies on exports for its economic growth. The recent U.S. military action has raised worries among officials about the potential economic consequences.
Officials in South Korea held an emergency security meeting on Sunday to assess the possible economic impact of the U.S. military action. The country aims to delay U.S. tariffs through talks and cooperate in mutual areas to mitigate any negative effects on its economy.
Seoul’s dependence on crude oil imports from the Middle East has deepened over the years, with these imports accounting for 72% of total imports in 2023. The recent events have caused oil prices to surge to their highest levels since January. Market participants are bracing for further price increases amid fears that an Iranian retaliation may lead to the closure of the vital Strait of Hormuz, through which approximately a fifth of global crude supply flows.
In response to the escalating tensions in the Middle East, South Korean President Lee Jae Myung has decided not to attend the NATO summit this week. His office cited uncertainties caused by the situation in the region as the reason for his absence.
The potential economic implications of the recent U.S. strikes on Iran have put South Korea on alert, with officials closely monitoring the situation to assess any impact on the country’s trade and economy.
(Source: Reuters; Reporting by Ju-min Park; Editing by Kate Mayberry)
