Seoul: South Korea will begin restricting naphtha exports Friday amid growing supply shortages triggered by the conflict in the Middle East. The Ministry of Trade, Industry and Resources announced Thursday the restriction will go into effect immediately after it is published in the official gazette at midnight Friday and remain in place for five months. According to Yonhap News Agency, the move comes as domestic supply disruptions of naphtha, a key feedstock widely used in petrochemical and other industries, have increased following U.S. and Israeli airstrikes on Iran. South Korea imports around half of its naphtha through the Strait of Hormuz, a major Middle Eastern trade route, which has effectively been closed due to the war. To support domestic companies handling naphtha, the government plans to expand low-interest loans through its supply chain fund and, if necessary, raise import credit limits. "As the Middle East crisis, which began in late February, enters its fourth week, the economic impact, such as higher prices, supply disruptions and heightened volatility in the foreign and financial markets, is increasingly evident," Finance Minister Koo Yun-cheol said during an emergency economic meeting presided over by President Lee Jae Myung to discuss the issue. The industry ministry said roughly 11 percent of domestically produced naphtha is currently exported, and those volumes will be redirected to domestic buyers under the new measures. "The goal is to keep available supplies within the country," Yang Ki-wook, director general of the ministry's bureau for industrial resource security, said during a press briefing. "Exports of certain heavy naphtha varieties not used by domestic plants may still be allowed." Export plans submitted to the ministry will be reviewed to determine whether the naphtha can be utilized by domestic petrochemical facilities before any approval is granted. Asked whether the restrictions could spark trade disputes, Yang dismissed the concerns. "We believe the likelihood of this expo rt restriction measure becoming a trade issue is low," he said. Separately, a ban on hoarding of urea and urea solution will also take effect starting Friday. The rules apply to importers, manufacturers and sellers, prohibiting them from holding more than 150 percent of last year's monthly average sales for more than seven days or refusing to sell without a valid reason.