South Korea threatens “ruin” for firms accused of hoarding amid supply shock

South Korea’s president has warned that companies attempting to profit from shortages linked to the Middle East conflict could face financial ruin, as authorities move to curb suspected stockpiling of key industrial goods.

Lee Jae Myung said on X that businesses accumulating petrochemical products in breach of a temporary government ban risk “complete ruin”, including the seizure of goods or recovery of their value.

“Stockpiling goods to make a small profit will lead to total ruin,” he wrote, adding that some firms were still operating with “outdated thinking” despite rapidly changing market conditions.

The warning comes as disruptions to naphtha supply, triggered by the conflict in the Middle East, begin to affect downstream production in South Korea. The shortages have already impacted the manufacturing of medical supplies, including syringes and intravenous fluid bags.

According to earlier inspections by the Ministry of Food and Drug Safety, dozens of companies have been suspected of hoarding syringes, with at least 14 cases referred to police for investigation.

By Aghakazim Guliyev