South Korean PM cancels China visit as energy concerns mount amid Iran war

By Soo-Hyang Choi

 

South Korea’s Prime Minister Kim Min-seok called off his planned visit to China this week, citing an urgent need to remain at home to manage the widening economic and livelihood impacts of the Iran war.

 

The decision is intended to allow the prime minister to “directly oversee emergency economic response efforts and ensure swift decision-making during the current crisis,” Kim’s office told Bloomberg News in a text message Tuesday. 

 

The government is set to announce response measures to protect the economy from the war, now in its fourth week, the prime minister’s office said, without elaborating.

 

 

Kim was originally scheduled to join the Boao Forum for Asia in Hainan this week as South Korea looks to improve ties with China under President Lee Jae Myung. South Korea has provided a prior explanation to China through diplomatic channels and sought understanding, Kim’s office said. 

 

The last-minute cancellation comes as the effective closure of the Strait of Hormuz is piling pressure on Washington and on major importers of oil, gas and fuels from the Persian Gulf, prompting them to scramble for solutions.

 

South Korea, a major importer of crude and exporter of fuels into Asia and beyond, is seeing increasing risks of inflation heating up and the conflict weighing on growth for a nation dependent on West Asian energy imports.  

 

South Korea’s Foreign Minister Cho Hyun held a phone call with his Iranian counterpart, Abbas Araghchi, on Monday and called for Tehran’s efforts to reduce tensions and ensure safety of navigation in the Strait of Hormuz. 

 

“I requested Iran’s special attention and support for the safety of our citizens in Iran, as well as necessary safety measures, while explaining that numerous vessels of affected countries, including ours, are currently anchored in the Strait of Hormuz,” Cho said in a post on X.

 

South Korea’s export growth maintained momentum in early March, signaling resilient demand. But a surge in global crude oil prices linked to the Iran conflict is raising raw materials costs, while worsening shipping conditions and broader supply disruptions are adding pressure on trade flows.

 

An official at the Industry Ministry said efforts to secure alternative shipments and the planned release of strategic reserves will prevent any major supply problems in April, Yonhap reported Monday.