South Korea Says No Supply Disruptions Yet for Health, High-Tech Materials; Backup Imports Ready

The South Korean government said key industries have not yet seen disruptions in supplies of critical raw materials despite growing concerns that a prolonged war in the Middle East could rattle global supply chains for health care, medical and advanced industries. Officials said they will move quickly to secure alternative import sources if problems emerge.

The Ministry of Trade, Industry and Energy said it reviewed supply conditions by sector during a “Middle East war response headquarters briefing” held by video at the Government Complex Seoul on Wednesday. Nam Gyeong-mo, a policy adviser to the industry minister, said core materials for semiconductors, autos, batteries and shipbuilding have not faced supply disruptions so far. The ministry said it is continuing to monitor the risk of higher raw material prices and distribution instability if the conflict drags on.

International oil prices remained elevated. As of 7 a.m. Wednesday, Brent crude was $101.50 a barrel and U.S. West Texas Intermediate was $92.69. That was up 40.1% and 38.3%, respectively, from March 27, just before the United States and Israel carried out airstrikes on Iran. JKM, a spot price benchmark for liquefied natural gas, rose by nearly 50% over the same period.

Domestic price increases for refined petroleum products were more limited, the ministry said. Compared with March 27, gasoline prices rose 18.5% and diesel rose 25.1%.

The government said it is accelerating steps to prevent supply-chain instability tied to the war. In health and medical supplies, it said inventories of IV solution packaging, syringes and medical gloves remain at normal levels and raw materials are being supplied steadily.

For IV solution packaging, the government said it has taken steps to avoid supply problems through the end of June and has also been pursuing alternative supply options through prototype testing since late last month.

For syringes, the Ministry of Food and Drug Safety has enforced a ban on hoarding since April 14 and is conducting on-site inspections with an enforcement team of about 70 people, the industry ministry said.

The ministry said it is also monitoring key manufacturing inputs. Hydrogen bromide used in semiconductor processes is being imported normally, mainly from the United States and Japan, it said. Helium supplies are also stable after securing substitute volumes from the United States.

Aluminum wheels used in auto parts have alternative supply lines in place, including Malaysia, India and China, the ministry said. Nickel sulfate, a key battery material, is expected to see limited impact because a large share is produced domestically.

Ethylene gas used by shipbuilders is continuing to be supplied with government mediation, the ministry said. HD Hyundai is set to receive 2,000 tons from HD Hyundai Chemical next month, including 200 tons to be supplied first to small and midsize shipbuilders. The ministry said it will accept applications from smaller shipbuilders through the Korea Offshore & Shipbuilding Association.

Officials said they are also checking supplies of consumer-related items such as paint, packaging materials, agricultural mulching film, syrup bottles and cosmetics containers. With concerns rising over higher packaging costs, the industry ministry, the food and drug safety ministry and the Ministry of SMEs and Startups have formed a separate task force to manage supply conditions for major items including ramen and infant formula.

The government has asked the petrochemical industry to prioritize domestic supply. Thirty-three companies in the Korea Chemical Industry Association said they plan to supply key products — including ethylene, propylene, PE and PP — to the domestic market first. Hanwha TotalEnergies said it is working to normalize supplies of paraxylene (PX) by securing additional naphtha volumes.