The Korea Gas Corp. (KOGAS), a government-owned firm, is central to the trade issue because it operates a long-term agreement with Russia's Sakhalin-II project for LNG. The contract continues through March 2028 and could be disrupted if British insurers stop offering reinsurance services next year. Trade Minister Yeo Han-koo highlighted these risks in a recent video call with his British counterpart, Anas Sarwar, where energy stability was a primary focus.
South Korea's request follows reports that the UK plans to restrict maritime and insurance services for Russian LNG by January 2027. Without a specific exception, KOGAS might struggle to maintain its supply. The European Union, which has similar policies, recently allowed LNG from Sakhalin-II to flow to Korea and Japan without restrictions. Yeo urged the UK to adopt a similar approach, arguing that stable energy imports are vital for Korea.
In the same discussion, the minister voiced worries over the UK's recent steel import restrictions. Starting July 1, the UK cut steel quotas by almost half and added a 50 percent tax on any imports above the limits. Although Korea’s tariff-free amount rose to 173,000 tons from 93,000 tons, more product categories are now included, increasing the overall pressure. Yeo asked the UK to revise the quotas to better accommodate Korean exports.