South Korea PM Cancels China Trip as Energy Concerns Mount
(Bloomberg) -- 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.
South Korea announced plans to restrict vehicle usage in the public sector, with limits on how often people can drive their vehicles based on plate numbers. The government plans to expand the restrictions to the private sector if the energy supply situation worsens.
“Concerns over the supply of crude oil and natural gas are increasing due to the escalating and prolonged war in the Middle East,” President Lee Jae Myung said at a Cabinet meeting Tuesday.
“To prepare for a potential crisis affecting people’s livelihoods, the economy, and industry as a whole, the government must proactively activate an emergency response system,” the president said.
Other steps include restarting nuclear reactors to raise nuclear power generation and easing limits placed on the usage of coal in power generation.
The prime minister was originally scheduled to join the Boao Forum for Asia in Hainan this week as South Korea looks to improve ties with China under Lee. 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 Middle Eastern 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.
(Updates with Lee’s comments, energy saving measures from 3rd paragraph.)
©2026 Bloomberg L.P.
