Seoul: The government will cover additional shipping costs crude importers have to bear when importing alternative supplies from regions other than the Middle East, the industry ministry said Wednesday, as part of efforts to stabilize the country's energy supply amid the Middle Eastern crisis.

According to Yonhap News Agency, the government will fully compensate additional shipping costs for alternative crude supplies between April and June, as stated by the Ministry of Trade, Industry and Resources. The compensation is expected to amount to 127.5 billion won (US$86.6 million).

The measure was announced at a meeting of officials from related government ministries and oil refining, petrochemical, and shipping industries held to check crude and naphtha supply chains. The ministry also announced an injection of 674.4 billion won to support up to 50 percent of the difference between pre-war prices and increased import prices of naphtha supplies during this period, to stabilize supplies of the industrial feedstock widely used across various industries.

Subsidies will also be provided for imports of materials that can replace naphtha, such as liquefied petroleum gas and condensate, as well as basic petrochemical materials, including ethylene and propylene. Industry Minister Kim Jung-kwan emphasized the government's commitment to safeguarding daily life and industrial activities by diversifying supply chains for naphtha and crude oil through securing alternative logistics routes.

South Korea's crude and naphtha imports have been directly affected by the effective closure of the Strait of Hormuz, as the country imports about 73 percent of naphtha and 69 percent of its crude supplies from the Middle East.