South Korea is actively exploring increased purchases of oil and gas from the United States, a move aimed at diversifying its energy sources and potentially mitigating the impact of proposed tariffs by US President-elect Donald Trump, Bloomberg reports.
Minister of Trade, Industry and Energy Ahn Duk-geun announced the potential strategy to reporters in Seoul on Thursday.
The plan is multi-faceted, targeting both the reduction of South Korea’s trade surplus with the US and enhancing its energy security. According to Minister Ahn, policymakers are also considering additional government support for companies to import more energy from countries outside the Middle East, South Korea’s traditional supply hub.
South Korea, heavily reliant on exports to fuel its economic growth, counts the US as one of its most crucial trading partners. The move comes amidst growing concerns about Trump’s protectionist policies, which include proposed universal tariffs aimed at slashing the US trade deficit with other nations.
“Other countries are all talking about how they need to ease the growing trade deficit under the Trump administration,” Ahn said. “We are pretty much in the same situation, so we are thinking about increasing energy imports, and there’s also a need to diversify supplies to improve energy security.”
This potential shift in energy procurement would position South Korea alongside several other energy buyers, including Vietnam, Taiwan, and the EU, that are also looking to boost purchases of US fossil fuels. The US has emerged as the world’s top exporter of liquefied natural gas (LNG) with output projected to roughly double by the end of the decade. It also stands as the world’s largest producer of oil.
South Korea, currently the world’s third-largest importer of LNG, has been evaluating its energy needs and its vulnerability to geopolitical factors in its traditional supply regions. The potential move towards US energy imports reflects a strategic effort to reduce reliance on a single region and bolster its energy security.
