Data showed that South Korea's crude oil import volume decreased over the past four months following the outbreak of the Middle East war, while the total import value increased by more than 20%.

According to statistics from the Korea International Trade Association today (July 25), South Korea's crude oil (based on MTI 1310) import value from March to June reached 30.23 billion dollars, up 21.1% from 24.97 billion dollars during the same period last year.

On the other hand, crude oil import volume over the same period dropped by 14.7%, from 45.1 million tons last year to 38.5 million tons this year.

This means that fewer crude oil imports came in, yet higher costs were paid.

This is interpreted as the result of disruptions in the supply and demand of Middle Eastern crude oil due to the blockade of the Strait of Hormuz and soaring global oil prices.

As the government and industry diversified their sources of crude oil imports, import volumes have gradually shown a recovery trend.

Although it decreased compared to the same period last year, looking solely at import volumes this year, they increased from 8.46 million tons in April to 9.7 million tons in May and 9.88 million tons in June.

The Ministry of Trade, Industry and Energy stated that there are no major issues with current supply and demand, as crude oil for July and August has been secured at over 110% compared to the previous year's average, and September at over 90%.

However, as tensions recently expand from the Strait of Hormuz to the Red Sea, concerns over supply chain instability and rising prices are growing.

According to the Korea National Oil Corporation's Petronet, Brent crude prices recorded 100.69 dollars per barrel on the 23rd, surpassing 100 dollars for the first time in two months since May 22 (103.54 dollars).

In addition, if passage is restricted even in the Red Sea, which has been utilized as a detour for the Strait of Hormuz, projections indicate that alternative routes such as the Suez Canal must be found, increasing both transportation time and costs.

According to the Ministry of Trade, Industry and Energy, while none of the domestic oil refiners have definitively decided to detour via the Suez route, some are reviewing the use of that route.

If the rise in global oil prices and import unit costs continues, the burden of production and logistics costs will also grow, potentially dealing a blow to domestic industries.

Previously, the Korea Institute for Industrial Economics and Trade estimated in its report titled "Hormuz Risk After the US-Iran War: Impact on South Korean Industry and Response Directions" that energy price shocks, such as surging crude oil prices during the blockade of the Strait of Hormuz, raised production costs across all industries by 3.73%.

(Photo: Yonhap News)