On May 5th, the South Korean business sector voiced serious concerns to the ruling Democratic Party regarding the rising logistics and transportation costs associated with the ongoing tensions in the Middle East, particularly the threat of military actions against Iran by the US and Israel. During an emergency meeting held at the National Assembly, industry representatives highlighted how these rising costs could adversely affect the price competitiveness of critical exports, especially in the semiconductor industry. Kim Young-bae, a ruling party lawmaker, emphasized that increases in oil prices are likely to translate to higher manufacturing costs and, subsequently, increased prices for semiconductors, a key export product for South Korea.

The meeting also addressed the critical issue of oil tankers being stranded in the Strait of Hormuz, where seven vessels are currently stuck, creating significant bottlenecks in oil transportation. Kim pointed out that among these tankers, three are carrying a total of 2 million barrels of oil, which parallels South Korea's daily oil consumption. In light of this situation, the business sector has called on the government to develop tailored energy supply scenarios that cater to the different demands of various industries. This tailored approach is deemed necessary to mitigate the potential impact of rising oil prices on domestic energy costs.

Furthermore, there are concerns regarding the future establishment of data centers in the UAE, which is projected to disrupt the semiconductor industry’s supply chain. The materials essential for semiconductor production, such as helium, are primarily sourced from local suppliers in these regions, raising alarms about future production hurdles. Attendees at the meeting included representatives from major South Korean firms and trade organizations, emphasizing the critical nature of these discussions for the country’s economic outlook and the semiconductor sector's health.