US becomes top naphtha supplier to South Korea after Iran conflict

The United States has become the largest exporter of naphtha to South Korea following the outbreak of the US–Iran conflict, Korean media reports, citing the Ministry of Trade, Industry and Resources.

South Korea now imports the largest share of its naphtha—24.7 per cent—from the United States. Other major suppliers include India at 23.2 per cent, Algeria at 14.5 per cent, the United Arab Emirates at 10.2 per cent, and Greece at 4.5 per cent, according to ministry data.

Before the conflict between the United States and Iran escalated in late February, the United States ranked seventh among South Korea’s naphtha suppliers. At that time, the United Arab Emirates was the leading source, followed by Algeria in second place, Qatar in third, Kuwait in fourth, and India in fifth.

“The U.S. has emerged as the largest import source because it was easier to secure supplies from the country in terms of availability,” said Yang Ghi-wuk, deputy minister for trade, industry and resource security, during a regular briefing on the country’s energy supply.

Asked whether the shift reflects a long-term structural change in South Korea’s naphtha supply chain, Yang struck a cautious tone, saying it is too early to determine, noting that the naphtha market remains highly sensitive to price fluctuations.

Yang added that domestic naphtha supplies—an industrial feedstock widely used across petrochemical and other industries—are expected to stabilise next month, supported by ongoing efforts to diversify imports and government policy measures.

According to the ministry, South Korea is expected to secure up to 90 per cent of its pre-conflict naphtha supply levels for May. Major petrochemical companies in the country are expanding plant operations in line with increasing inbound shipments.

“The equivalent volume of naphtha contracts signed over the entire month of March was matched within just half a month in April,” Yang said, adding that Seoul has also been importing significant volumes of basic petrochemical feedstock from China.

By Tamilla Hasanova