It has been identified that seven crude oil tankers from domestic oil refinery companies are stranded in the Strait of Hormuz due to the repercussions of the Middle East conflict. The business community expressed concerns over disruptions in crude oil transportation, while pointing out that if the situation is prolonged, it could also affect data center construction in the Middle East region and the supply of key semiconductor materials.

Kim Chang-beom, Standing Vice Chairman of the Korea Enterprises Federation, stated in his opening remarks at the “Democratic Party of Korea-Business Community Emergency Meeting on Middle East Situation and Tariff Negotiations” held at the National Assembly Members’ Office Building on the morning of March 5, “If the Iran situation is prolonged, it could pose a significant burden across the board, from energy and shipping industries to Middle East export projects.” He added, “As the restructuring of the petrochemical industry has just begun, difficulties for related industries are also expected to increase.”

He continued, “This is a time when pan-government support and response are needed for changes in trade and supply chain structures, including tariffs and non-tariff barriers, along with variables such as energy prices, logistics costs, and exchange rates,” also urging the prompt processing of the Special Act on Investment in the United States. The meeting was attended by Democratic Party members from various standing committees including the Foreign Affairs and Unification Committee, the Trade, Industry, Energy, SMEs and Startups Committee, and the Strategy and Finance Committee, as well as the Korea Enterprises Federation, Korea International Trade Association, and Korea Trade-Investment Promotion Agency (KOTRA). From the industry side, Samsung Electronics, Hyundai Motor, LG, SK, GS Caltex, HD Hyundai, and Hanwha Ocean participated.

At the meeting, the business community demanded countermeasures, stating that a total of seven crude oil tankers from domestic oil refinery companies are currently stranded in the Strait of Hormuz. “Seven ships belonging to our companies are reportedly stranded in the Strait of Hormuz,” they said, adding, “One ship carries about 2 million barrels on a large scale, which is equivalent to the entire daily oil consumption of the Republic of Korea. Up to seven ships are stranded in this situation, and there have been demands from companies that countermeasures are needed.” Specifically, two ships from HD Hyundai Oilbank and one ship from GS Caltex are reportedly stranded. “From the companies’ perspective, there were requests to continue close consultations regarding whether there are ways to utilize government stockpiles and about the situation,” they added.

Additionally, the oil refinery industry demanded advance warnings on the ground for employee safety management, as they cannot immediately withdraw employees due to contractual conditions inherent to the industry.

Furthermore, the semiconductor industry pointed out concerns that data center construction centering on the Middle East region, including the United Arab Emirates, may face setbacks. Lawmaker Kim stated, “The total volume of data center construction planned worldwide is about 40 gigabytes, and 7 to 8 gigabytes are scheduled to be built in the Middle East by 2030.”

There were also concerns that if the war is prolonged, it could affect the supply of key materials needed for semiconductors. This is because approximately 90% of key global semiconductor materials, including helium, are procured from the Middle East. Vice Chairman Kim added, “It’s not that there will be an immediate shock to semiconductor demand, but there are concerns that if the situation is prolonged, data center construction could be delayed or worsen.” In response, he emphasized the need for public-private collaboration to precisely analyze the impact on industries such as oil refining and semiconductors.

Source:Business Korea