South Korea boosts refunds to 100% to diversify non–Middle East oil imports
South Korea will expand the refund cap for additional freight costs on crude oil imports from regions other than the Middle East from roughly 25% to up to 100%, through December. The Ministry of Planning and Budget resolved to reimplement the policy because the Middle East war has become protracted. The minimum intake volume and long-term contract requirements will be exempted.
Why it matters: This measure reflects energy security concerns as South Korea seeks to reduce its dependence on Middle East crude amid prolonged conflict.