A surge in demand for plastic bin bags has been reported in Seoul, with nearly 2.7 million of the mandatory "pay-as-you-throw" bags being sold daily, almost five times the normal volume. This unusual stockpiling is attributed to concerns over potential scarcity due to the strain on oil supplies amid the near-total closure of the Strait of Hormuz. South Korea's deep energy dependence on Middle Eastern oil has sparked worries among residents, who are scrambling to prepare for a possible shortage. The country imports almost all of its oil, with more than two-thirds of it coming from countries in the Persian Gulf.
The situation has also had a significant impact on the country's economy, with investors dumping Korean stocks since the war on Iran broke out. The South Korean won has plummeted to its lowest level in 17 years, briefly breaching 1,530 per US dollar in intraday trading. The Organisation for Economic Cooperation and Development has cut its 2026 growth forecast for the country by 0.4 percentage points to 1.7 per cent.
As the situation continues to unfold, residents are bracing themselves for potential shortages and economic instability. The South Korean government will likely face increasing pressure to address the nation's energy dependence and mitigate the effects of the crisis.
