The Korea Petroleum Association named Kang Bong-kyun, former legislator and minister of strategy and finance, to be its chairman on Sept. 9.
Kang, a former legislator of the ruling Saenuri Party, will serve for two years. He is a graduate of the Seoul National University Commerce College and his brilliant career includes serving as the Minister of the Communication and Information Ministry in 1997 and a legislator from the 16th to the 18th National Assembly. He entered government service after passing the 6th Administrative High-Level National Examination. In April, he served as a co-chair of the ruling Saenuri Party Election Committee for the General Election.
The Korea Petroleum Association said the oil refining industry kept going while oil prices stayed low in 2015 by shipping more than half of its oil products overseas. KPA said SK Energy, GS Caltex, S-Oil and Hyundai Oilbank exported 4.3 million barrels of oil out of 9.5 million barrels of oil that they produced in 2015, a volume similar to 2014 when 45.8 percent of the oil the industry produced was shipped out of the country. The four oil refiners secured their export market despite the global economic downturn and continued to export around 50 percent of the oil they produced annually.
The number of countries importing Korean oil products rose steadily from 55 to 66 in 2014, from China and Japan among Asian countries to the U.S., Europe, Saudi Arabia, and the UAE, among the major oil producers in the Middle East.
Export volume increased steadily, but the value fell due to the fall in oil prices. For example, the oil exports in 2014 rose to 4.3 million barrels from the previous year up 2 percent, but the value fell to $27.3 billion, down 41 percent compared to $46.4 billion recorded in the preceding year.
KPA officials said the oil refiners have been able to keep up exports due to their competitive edge, the exploration of new market for their oil products, market diversification, and boosts in high value-added products.
They went on to add that the government should give tax support as an incentive for oil refiners to continue to boost their oil products through the heightened competitiveness of their oil products. Tax favors and other government policies will enhance their competitive edge further, while they continue to boost the production of high value-added oil products to further boost the exports of oil products from Korea.
The Korea Petroleum Association was inaugurated on Sept. 29, 1980 in recognition by both the government and business circles of the need for creating a centripetal entity for the oil refining industry in order to tide over the turmoil caused by the second oil crisis.
The association now has four regular member firms (SK Energy Corporation, GS-Caltex Oil Corporation, S-Oil Corporation, and Hyundai Oilbank Corporation), along with one special member firm (Korea National Oil Corporation) and other associate member firms, which are all participating in oil exploration and development projects abroad.
The association aims to attain a sound and systematic development of the petroleum industry through promotion of mutual understanding and maintenance of friendly relations among member firms. It also intends to contribute to the formulation of petroleum policy by the government so as to secure a stable supply of petroleum, the most important energy source in Korea.