Seoul: The government is considering imposing restrictions on naphtha exports as South Korea faces supply shortages of the material, widely used across petrochemical and other industries, due to persisting geopolitical tensions in the Middle East, Seoul officials said Tuesday.

According to Yonhap News Agency, the preparations for potential export restrictions are underway as South Korea experiences increasing disruptions in naphtha supplies. The issues have been exacerbated by recent U.S. and Israeli airstrikes against Iran, with companies such as Yeochun NCC announcing "force majeure" for some of their products due to these shortages.

South Korea's reliance on the Strait of Hormuz for approximately half of its naphtha imports has become problematic, as the route has effectively been closed due to ongoing conflict. Yang Ghi-wuk, deputy minister for trade, industry, and resource security, stated that related ministries are preparing for the implementation of naphtha export restrictions and are also considering an emergency supply adjustment order if the shortages persist.

In response to the crisis, LG Chem Ltd. suspended operations of its ethylene production facility in Yeosu, highlighting the impact of naphtha supply disruptions. Last week, the South Korean government temporarily designated naphtha as an economic security item to better stabilize supply and support affected companies.