Lee Jae-myung: The situation is more severe than expected, and I can't sleep due to worry... Korean citizens are starting to stock up on trash bags.

According to Xinhua News Agency, on March 31 the South Korean government announced that, starting immediately, it will lend strategic petroleum reserves to companies that need them, to ensure that upstream enterprises such as refineries have a stable supply. Just a day earlier, South Korean President Lee Jae-myung warned that the current energy situation may be even more severe than expected, saying that is why he “can’t sleep at night.”

Meanwhile, because South Korea’s most widely used garbage bags are still primarily made from petroleum, tight supplies of oil have led some supermarkets to quietly treat garbage bags as “scarce goods,” with even stockouts occurring—prompting South Korean residents to rush to buy them.

Lee Jae-myung Profile image Source: CCTV News

Korean companies borrow

strategic reserve crude oil from the government

According to a report by Yonhap News Agency citing the Ministry of Trade, Industry and Energy of South Korea, over the next two months, refineries and other companies in need may borrow crude oil from the government. The crude oil lent out comes from South Korea’s strategic reserves and is mainly produced in the Middle East. These companies will repay the government after obtaining crude oil through other channels later. The South Korean government hopes that this will ensure the stable operation of refining companies and delay the release of strategic petroleum reserves.

An official from South Korea’s Ministry of Trade, Industry and Energy said at a press briefing on the day that four companies have already submitted applications, totaling 20 million barrels of crude oil they want to borrow. The South Korean government decided that later that evening it would first approve the application of one of the companies and lend 2 million barrels of crude oil. It was stated that South Korean companies are currently planning to obtain crude oil from production regions such as Africa, Central Asia, the Americas, and Australia.

Lee Jae-myung says the energy problem is serious

“I can’t sleep either”

South Korea’s energy supply is highly dependent on imports, with about 70% of its oil and about 20% of its liquefied natural gas coming from the Middle East.

On March 30, Lee Jae-myung, at a government meeting on Jeju Island, emphasized the necessity of transitioning to renewable energy as soon as possible. He said, “Because of the energy problem, the whole world has fallen into chaos. The situation is so serious that I can’t sleep at night.”

At a cabinet meeting on March 31, Lee Jae-myung said that because South Korea has a high share of energy imports, it is necessary to “respond to the current energy situation to the maximum extent” in a timely and forceful manner, including considering emergency fiscal measures to address it. He also said he is willing to send a special envoy to the Middle East for this purpose.

According to Reuters, due to the blockade of the Strait of Hormuz, 26 ships are currently stuck in the Persian Gulf. The South Korean government is negotiating with countries in the Middle East to find alternative transportation routes for energy.

Strait of Hormuz Profile image Source: CCTV News

Lee Jae-myung says

it may activate an “emergency fiscal order”

According to CCTV News, on March 31 local time, South Korean President Lee Jae-myung presided over a State Affairs meeting at the presidential office, Cheong Wa Dae, where it deliberated on and approved a supplementary budget bill of 26.2 trillion won (about 118.26 billion yuan RMB). Of this, about 10 trillion won would be used to ease the burden caused by high oil prices. This is the second supplementary budget drafted since Lee Jae-myung’s government took office.

Lee Jae-myung Profile image Source: CCTV News

The government plans to submit the budget bill to the National Assembly at 3:00 p.m. on March 31. After review by the National Assembly’s Budget and Appropriations Special Committee, it is expected to be put to a vote for handling at the April 10 plenary session of the National Assembly.

In addition, when discussing the energy supply shortages triggered by conflicts in the Middle East, Lee Jae-myung said at the meeting, “If necessary, we can activate the emergency fiscal order stipulated in the Constitution.”

An emergency fiscal order is a presidential inherent power under the South Korean Constitution. Under the order, when it is impossible to wait for National Assembly procedures due to the need for urgent measures in situations such as “internal unrest, diplomatic crises, natural disasters, major fiscal or economic crises,” the president may issue legally binding orders.

Energy anxiety leads to

Koreans rushing to buy garbage bags

“Did you get a garbage bag?” In recent days, this kind of greeting with helplessness has been trending in many neighborhoods in Seoul, the South Korean capital.

The fighting in the Middle East thousands of kilometers away, through inconspicuous garbage bags, is being reflected in the calm everyday lives of people in South Korea.

According to Xinhua News Agency, South Korea’s household waste classification system is strict. Garbage bags are not ordinary plastic bags; they are “pay-by-weight garbage bags” whose use is directly linked to garbage disposal fees, with the government setting the unified specifications and mandating their use. The raw materials for these garbage bags come from naphtha produced through oil refining. According to South Korean media, about 50% of South Korea’s demand for naphtha depends on imports, with about 60% coming from the Middle East. Since the United States and the U.S. (sic) launched military strikes against Iran, the supply volume of naphtha from the Middle East has already decreased by about 30%.

Although the South Korean government has repeatedly emphasized that the supply of garbage bags is sufficient and prices will not rise, signals that international oil prices are fluctuating and the costs of petrochemical products are trending upward have still caused anxiety-driven rush buying among South Korean residents.

This “life anxiety” stemming from “energy anxiety” is not unfamiliar in South Korea. As a country highly dependent on resource imports, South Korea is far more sensitive to external shocks than many economies. Once oil prices, exchange rates, and shipping costs fluctuate, they often quickly show up in residents’ daily spending—from higher oil prices, to adjustments in electricity bills, to the knock-on effects on food and logistics prices.

The garbage bag rush-buying wave is a snapshot of South Korea’s “Middle East anxiety syndrome.”

Source: Xinhua News Agency, CCTV News

Massive information, precise interpretation—only on the Sina Finance APP

Responsible editor: Song Ya-fang