The South Korean government on Mar 27 implemented a measure to ban naphtha exports in principle. The measure is expected to continue for five months. Supply/demand fundamentals for naphtha have been tightening as Middle Eastern naphtha supply has been disrupted by the worsening situation in Iran. Through this measure, the government intends to stabilize domestic naphtha supply and demand and address the issue of declining operational rates at naphtha crackers.

According to a government announcement, the country relies on imports for 45% of its domestic demand. Of this, Middle Eastern imports account for 77%, and the country is significantly affected by the conflict in the Middle East. As emergency support measures, the government designated naphtha as an economic security item and will provide financial support, such as low-interest loans, through a supply chain fund.

According to petrochemical market sources, the South Korean government is also considering similar export restrictions on petrochemical products.

Japan's 2025 imports from S. Korea and Middle East reach 79.54%

According to trade statistics from Japan's Ministry of Finance (MOF), naphtha imports from South Korea from January to December 2025 totaled 145,703kl, accounting for 9.44% of the total. Combined with imports from the Middle East, such as Kuwait, Qatar, and the United Arab Emirates (UAE), the figure reached 79.54% of the total.