The Ministry of Trade, Industry and Energy announced that Minister Kim Jeong-kwan held a video conference on June 1 with Mohammed Al Yousuf, chairman of the Oman Free Trade Zone Authority. The two sides discussed key economic cooperation issues, including stable resource supply, plant contracts, and logistics facilitation.
Since the outbreak of conflict in the Middle East, the government has been working to secure stable resources and minimize the impact on supply chains and exports. Notably, a presidential envoy delegation visited Oman in April, achieving a commitment to secure 5 million barrels of crude oil and 1.6 million tons of naphtha by the end of the year. This amount exceeds the total crude oil imports of 4.5 million barrels from the previous year.
Oman is also a strategic location that allows for bypassing the Strait of Hormuz, a key transit route for Middle Eastern crude oil and liquefied natural gas (LNG). If alternative routes combining ports and land transport networks within the region, such as Duqm Port, are secured, stable oil supply can be maintained even amid heightened risks in the Strait of Hormuz.
To expand cooperation with Oman, which has potential as an alternative logistics hub and resource supplier outside the Strait of Hormuz, the Ministry of Trade arranged this meeting. During the discussion, Minister Kim requested support to ensure the smooth supply of crude oil and naphtha as agreed upon in the envoy delegation's talks in April.
He also highlighted the successful execution of major projects in Oman, such as the Duqm refinery and the Mena solar power plant, and expressed interest in participating in new projects. Additionally, they discussed utilizing Oman's major ports as alternative logistics hubs to bypass the Strait of Hormuz.
Minister Kim noted, "Our companies are facing challenges with customs payments and refunds in Oman, as well as duplicate inspections and quarantines at the Saudi Arabian border during the transportation of goods through Duqm Port. We need cooperation to simplify these procedures to ensure swift delivery of goods to their final destinations."
The two sides agreed to promptly resume the Korea-Oman Economic Cooperation Committee, which has not met since 2016, to discuss economic issues.
Minister Kim emphasized, "Oman, with its geographical advantage outside the Strait of Hormuz and abundant energy resources, is an important partner for strengthening future cooperation in the Middle East. Through this meeting and the upcoming Economic Cooperation Committee, we will actively seek ways to enhance cooperation in resource security, plants, and logistics."
* This article has been translated by AI.
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