South Korea Responds to Strait of Hormuz Blockade Impact on Trade

The recent closure of the Strait of Hormuz has introduced new challenges for South Korea’s trade and energy sectors, affecting logistics and export activities with the Middle East. The development is linked to security actions taken by Iran’s Islamic Revolutionary Guard Corps following airstrikes in late February 2026.

The Strait of Hormuz is a vital maritime route, handling about one-fifth of the world’s seaborne crude oil trade. South Korea relies heavily on this passage for both energy imports and the export of goods, including pharmaceuticals and medical devices, to countries in the Middle East.

South Korea’s government convened an emergency “Real Economy Inspection Meeting” on March 1, 2026, led by Deputy Minister Moon Shinhak, to evaluate risks to crude oil and gas supply, logistics, supply chains, and financial markets. Officials have stated that alternative crude oil import sources, such as the United States and Australia, are being considered in response to the disruption.

Approximately 13,956 South Korean small and medium-sized enterprises (SMEs) and startups operate in the Middle East, with an annual export value of $6.45 billion identified as being at risk due to the closure. To address these risks, the Ministry of SMEs and Startups has increased international shipping vouchers and activated a stabilization fund.

What the numbers show

• South Korea exported $569.07 million in pharmaceuticals to 15 Middle Eastern countries in 2025
• Exports of medical devices to the UAE and Saudi Arabia reached $145 million and $81 million, respectively, in 2024
• South Korea’s oil reserves cover about seven months of supply
• Roughly 70% of South Korea’s crude oil imports and up to 30% of its natural gas come from the Middle East
• South Korea’s API self-sufficiency rate was 11.9% in 2024

The Korea International Trade Association has projected that the blockade could increase maritime shipping costs by 50% to 80%. Delivery times for goods rerouted around the Strait may rise by three to five days, according to the trade body’s statement.

South Korea’s pharmaceutical industry exported $569.07 million in products to Middle Eastern countries in 2025, while medical device exports to the United Arab Emirates and Saudi Arabia totaled $145 million and $81 million, respectively, in 2024. The nation’s self-sufficiency rate for active pharmaceutical ingredients was 11.9% in 2024, with most imports coming from China, India, Japan, and France.

Energy security remains a priority, as a U.S. think-tank analysis estimated that over half of South Korea’s energy consumption depends on crude oil and natural gas from the Middle East. The country maintains oil reserves sufficient for about seven months, according to official figures.

Industry reaction

A medical device company official stated that there has been no immediate direct impact on supply, but noted that changes in flight routes or shipping schedules could disrupt product deliveries. The Korea International Trade Association stated that shipping costs and delivery times are likely to rise if the blockade continues.

The Ministry of SMEs and Startups announced measures to support affected businesses, including doubling shipping vouchers and activating emergency funds to help stabilize operations amid the ongoing risk.

* This article is based on publicly available information at the time of writing.