Seoul: A former senior U.S. official on Tuesday emphasized the importance of South Korea diversifying its specialty gas supply for its chipmaking industry, highlighting that ongoing disruptions to shipping through the Strait of Hormuz could impact the nation's crucial growth sector.

According to Yonhap News Agency, Daniel Kritenbrink, former assistant secretary of state from 2021-25, shared these insights during an online press briefing. This briefing coincided with the release of a report by the Asia Group, a U.S.-based advisory firm, detailing Asia's vulnerability to disruptions in the Strait of Hormuz, a key route for oil, natural gas, and other shipments.

The report indicated that persistent disruptions in the strait, triggered by the U.S.-Israeli conflict with Iran, could impact South Korean chipmakers. These companies are noted as the world's largest helium consumers, sourcing over 65 percent of their supply from Qatar.

Kritenbrink, who is now a partner at the Asia Group, stated, "I think many of us weren't completely aware of just how reliant South Korea and really much of the region are on helium for the chipmaking industry, and much of that helium has been sourced from the Middle East, historically."

He further elaborated on the efforts by South Korea and other key countries in the chip sector to diversify their sources of helium, emphasizing that diversification is vital for the long term. "I think you've seen Korea and other key countries in the chip sector really work hard to diversify their sources of helium. I think diversification is the long-term name in the game. I don't think countries like South Korea really have any other choice."

Kritenbrink described the semiconductor sector as both South Korea's "shield" and "vulnerability," noting, "Chips are carrying much of Korea's growth. We read all about that, but the sector also depends on stable electricity, specialty gases and predictable logistics."

The Asia Group's report also highlighted South Korea's reliance on helium from Qatar, making prolonged disruptions a direct threat to the country's primary growth engine. It noted that while government intervention and aggressive diversification efforts have mitigated immediate supply challenges from the Middle East conflict, extended disruptions could compel companies to secure costly long-term contracts or divert research and development resources toward ensuring supply security-opportunity costs that could accumulate over time for South Korea's leading technology sector.