Lee, South Korea's Lee, calls for an energy-saving campaign that includes curbs on automobiles

The South Korean President Lee Jae Myung called on Tuesday for a nationwide energy-saving campaign due to the threat posed by the war in Iran. He said that public institutions would reduce their use of passenger cars.

Kim Sung Whan, Energy Minister, told a cabinet meeting that curbs on private vehicles were for the time being voluntary but would be reviewed if energy alert levels increased.

He said that the government would encourage staggered commute hours, as well as other conservation measures, to be taken by the 50 largest oil-consuming companies.

Kim said that Seoul will also restart five nuclear reactors in May, relax restrictions on coal plants and expand renewable energy sources to reduce long-term dependence on LNG.

South Korea is planning to draft a 25 trillion won ($16.6billion) supplementary budget as soon as possible. This could include cash vouchers and financial assistance for businesses. Lee said that the most important thing is to deploy funds quickly and effectively in the areas where they are most needed. The finance ministry announced it would present the budget before the end of March. The U.S. and Israeli strikes against Iran, as well as Tehran's retaliation, have caused severe disruptions in global energy markets. Tanker traffic has been brought to a halt through the Strait of Hormuz.

South Korea imports 70% of its crude oil via the Strait of Hormuz according to the lawmakers and industry ministry. South Korea faces an 'imminent energy crisis despite having 190 million barrels in oil reserves. 100 million barrels are held by the government, and 90 millions by private refiners.

The International Energy Agency (IEA), however, has stated that reserves can last 208-days. However, officials have noted that this number excludes petrochemicals exports and therefore, the actual buffer is much shorter. Analysts said that based on the Korea?National Oil Corporation data, the daily consumption rate in 2024 would be 2.9 million barrels. This means that reserves might not last for two months. The UAE has pledged 24 million barrels to the government, but timing is still unclear.

(source: Reuters)