South Korea extends naphtha export restrictions up to January 2027

South Korea has decided to extend its naphtha export restrictions for another five months, up to January 2027, due to ongoing geopolitical uncertainties in the Middle East. The Ministry of Trade, Industry and Resources (MOTIR) stated this on August 27. Naphtha exports are currently prohibited, but may be granted exceptions when the material is unsuitable for domestic use or when a shipment would not impact domestic supply, as determined by the MOTIR.

In the first seven months of 2026, South Korea exported 1.07 million tonnes of naphtha, a significant decrease of over half from the 2.2 million tonnes exported in the same period of 2025, according to the ICIS Supply & Demand Database. For the entire year of 2025, South Korea shipped 3.89 million tonnes of naphtha.

MOTIR requires daily reporting on production, imports, use, sales, and inventories of oil refiners and petrochemical companies up to January 26, 2027. Naphtha is a crucial feedstock for South Korea's petrochemical industry, which supplies essential materials for the country's semiconductor and automotive sectors. Initially, South Korea imposed these export restrictions on naphtha on March 27 for a five-month period in response to supply disruptions linked to Middle East issues.

South Korea's naphtha imports in the first seven months of 2026 experienced a 21.7% year-on-year decline, reaching 12.6 million tonnes. For the whole of 2025, the country's total naphtha imports amounted to 26.7 million tonnes, accounting for 45% of its overall requirements in 2025. Approximately 77% of these imports were sourced from the Middle East.