South Korea’s Lee calls for energy saving campaign including curbs on cars

2026-03-24 - 04:31

South Korea imports around 70% of ​crude oil through the Strait of Hormuz. (EPA Images pic) SEOUL: South Korean President Lee Jae Myung on Tuesday called for a nationwide energy-saving campaign over risks to oil and gas supplies from the Iran war, saying public institutions would cut back on their use of passenger cars. Energy minister Kim Sung-whan told a cabinet meeting private-sector vehicle curbs were voluntary for now, but could be reviewed if the energy alert level increased. The government would ask the top 50 oil-consuming businesses to cut use, and encourage staggered commuting hours and other conservation steps, he said. Kim also said Seoul would restart five nuclear reactors by May, ease restrictions on coal plants and expand renewable energy to reduce longer-term dependence on LNG. South Korea plans to draft a supplementary budget of 25 trillion won (US$16.6 billion) as soon as possible which could include cash vouchers for consumers and financial support for companies, amid growing stimulus talks by other economies. “Right now, what matters most is not saving government finances, but deploying funds swiftly and effectively where they are needed most,” Lee told the meeting, as the finance ministry said it would submit the budget to parliament by end-March. The ongoing US-Israeli strikes on Iran and Tehran’s retaliation have produced severe disruptions to global energy markets, bringing tanker traffic through the Strait of Hormuz to a near standstill. South Korea imports around 70% of ​crude oil through the Strait of Hormuz, according to lawmakers and the industry ministry. The country faces a looming energy crisis despite holding about 190 million barrels of oil reserves – 100 million barrels by the government and 90 million by private refiners. While standards from the International Energy Agency (IEA) suggest reserves could last 208 days, officials note this figure excludes uses such as petrochemical exports, making the actual buffer significantly shorter. Based on a daily consumption rate of 2.9 million barrels as of 2024 according to Korea National Oil Corporation data, analysts said the reserves might not last two months. The government has secured pledges from the UAE for 24 million barrels of oil, but the timing of shipments remains unclear.