Saudi Share of South Korea’s Crude Imports Falls Below 30%

Saudi Arabia’s share of South Korea’s crude oil imports fell below 30% for the first time in five years, highlighting a broader effort by Korean refiners to diversify supply as geopolitical risks disrupt traditional Middle Eastern routes.

Saudi crude made up 29.9% of South Korea’s total crude imports from January through August, according to industry data from the Korea National Oil Corp. and the Korea Petroleum Association. That was down from a cumulative share of 30.91% through July. Saudi Arabia nevertheless remained the country’s largest crude supplier during the period.

The last time the annual share of Saudi crude dropped below 30% was in 2021, when energy markets were being reshaped by pandemic-era disruptions and heightened regional tensions. Industry officials said the share could fall further if the current trend persists, potentially slipping to third place or lower among South Korea’s suppliers. Such an outcome could push the Saudi share beneath the previous low recorded in 1986.

The shift reflects refiners’ attempts to reduce exposure to supply interruptions in the Middle East. Conflict in the region has affected oil facilities and renewed concerns about the security of the Strait of Hormuz, a critical passage for global energy shipments. Saudi exporters have used alternative routes around the Red Sea, but shipping pressure has continued as Houthi rebels have threatened vessels in the region.

South Korean refiners have responded by buying more crude from other regions, particularly the United States. U.S. oil accounted for 20.12% of the country’s crude imports during the first eight months of the year. Its cumulative share first moved above 20% in the January-April period and remained over that threshold through August.

The changing supplier mix carries implications for both energy security and import costs. A more diverse portfolio can make South Korea less vulnerable to a disruption affecting any single exporter or shipping lane. At the same time, refiners must account for differences in crude quality, transportation distance and freight expense when adjusting where they buy oil.

South Korea relies heavily on imported energy, making the stability of crude supplies an important factor for domestic fuel prices, industrial production and the trade balance. The latest figures suggest that refiners are treating diversification as a practical response to geopolitical uncertainty rather than relying predominantly on long-established suppliers in the Gulf.