Korea extends naphtha export restrictions for another five months

South Korea will extend naphtha export restrictions and anti-hoarding measures for petrochemical feedstocks through Jan. 26, 2027, after crude oil and naphtha supply risks persisted amid Middle East tensions and disruption around the Strait of Hormuz. Petrochemical producers and manufacturers need prior approval from the Minister of Trade, Industry and Energy to export naphtha, must report production, shipments, destinations and inventories daily, and cannot hoard supplies. The rules also cover seven petrochemical base fractions, including ethylene, propylene and benzene, with inventories capped at 80% of the same period a year earlier. The government may order production, shipment or sales adjustments, designate recipient companies and lift the measures early if supply conditions stabilize. It resumed a strategic reserve swap program on Aug. 24, allowing refiners to borrow government crude reserves before contracted imports arrive.

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