South Korea’s Ministry of Industry flags of concern over US strike against Iran

SEOUL (Reuters) – South Korean side-job minister raised concerns Monday about the potential impact on the country’s trade from the recent US strike against Iran.

“As the situation in the Middle East enters a new phase with airstrikes at Iran’s nuclear facilities, there are concerns about the impact on exports and imports,” according to the ministry, first Deputy Minister of Industry, Moon Singh Hak, said at a monthly meeting overseeing exports.

South Korea is Asia’s fourth largest economy and is heavily dependent on exports.

Authorities held an emergency security conference on Sunday to assess the potential economic impact of US military actions.

Seoul has deepened its dependence on imports of crude oil from the Middle East, which accounted for 72% of its total imports in 2023.

Oil prices jumped to a high from January on Monday, requiring market participants to further price increases for fear that Iran’s retaliation could include the closure of the Strait of Hormuz.

South Korean President Lee Jae Myung will not attend the NATO summit this week. His office said earlier, citing the uncertainty caused by the Middle East situation.

(Reporting by Ju-Min Park, Editing by Kate Mayberry)