Why it matters. Korea is one of the world's biggest energy importers with almost no domestic oil or gas, so where it buys from is a closely watched signal of shifting global energy and trade alignments.
Background. South Korea has historically leaned heavily on Middle Eastern crude that transits chokepoints like the Strait of Hormuz, making supply diversification a long-standing national-security priority. Kang Hoon-sik serves as presidential chief of staff under President Lee Jae-myung, who took office recently; sending a senior aide as an economic envoy is a common Korean tactic to fast-track government-backed business deals. KOGAS is the state-owned firm that dominates the country's gas imports.
What to watch next. Watch for the LNG Canada second-phase final investment decision expected in the third quarter of 2026, and whether Korea's submarine bid advances during the same diplomatic push.
South Korea announced on June 2 that it will more than triple its imports of Canadian crude oil this year, raising the volume from 4.88 million barrels in 2025 to as much as 16 million barrels, as Seoul moves to diversify its energy suppliers. The plan was unveiled at a joint Korea-Canada energy and resources supply-chain forum in Ottawa, held alongside a high-level visit by a special presidential envoy.
A Major Expansion in Crude and Gas
The forum, co-hosted by South Korea’s Ministry of Trade, Industry and Energy and Canada’s Department of Natural Resources, drew roughly 150 participants from government, industry associations and companies in both countries. Talks spanned crude oil, liquefied natural gas (LNG) and critical minerals.
On crude, the two sides agreed to lift imports roughly 3.3-fold this year, with an ambition to reach up to 20 million barrels annually over time. Korean officials framed the deal as mutually beneficial: Canada, which currently sends more than 90% of its crude to the United States, gains a foothold in Asia, the world’s largest oil-consuming region, while Korea broadens its supply base.
LNG was the other centerpiece. The Korea Gas Corporation (KOGAS), the state-run gas utility, holds a 5% stake in the first phase of the LNG Canada project and already imports about 700,000 tonnes of gas a year through it. The countries discussed advancing a second phase, which is aiming for a final investment decision within the third quarter of this year.
Why Western Canadian Gas Appeals to Seoul
Officials also weighed adding 2 million tonnes a year from the Ksi Lisims project, a large LNG export venture on Canada’s northwest coast. If both the LNG Canada second phase and Ksi Lisims proceed, Korea could secure a steady 3.4 million tonnes of Canadian LNG annually, lifting Canada’s share of Korean LNG imports from 1.7% in 2025 to a projected 3.0% by 2031.
A key selling point is geography. LNG shipped from Canada’s west coast crosses the Pacific without passing through major geopolitical chokepoints, which Seoul says would strengthen the security and stability of its energy supply.
A Diplomatic Push Behind the Deal
The forum was timed to coincide with a visit by Kang Hoon-sik, chief of staff to South Korea’s president, who traveled to Canada on May 31 as a special envoy for strategic economic cooperation. Before the forum, Kang met Canadian Natural Resources Minister Tim Hodgson to discuss the broader direction of government-level energy cooperation.
Kang is also expected to lend support to Korea’s bid for a major Canadian submarine procurement program valued at around 60 trillion won (roughly US$44 billion), signaling that the visit’s agenda extends well beyond energy.
