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The recent surge in oil prices stemming from the Middle East situation is imposing severe cost increase pressures on Busan-based manufacturers, including automotive parts manufacturers and other businesses that rely on petrochemical-based raw materials, sparking growing concerns for the broader regional industry.

Busan Manufacturing Sector Directly Hit by Rising Oil Prices

An automotive parts manufacturer located in Gijang-gun, Busan, celebrating its 47th anniversary, is recognized for its technology in producing rubber components for vehicles. However, the recent rise in oil prices due to the Middle East situation is exerting significant manufacturing cost pressure on this company. As it uses petrochemical-based raw materials, the firm is striving to offset the cost increases as much as possible through process optimization and energy conservation. Lee Dong-soo, team leader at the automotive parts manufacturing company, predicted, "In the short term, we can sustain operations for about a month with current inventory, but it will become difficult if petrochemical product prices remain elevated for over a month."

High Proportion and Concerns in Petrochemical, Rubber, and Plastics Industries

According to a Busan regional manufacturing survey by the National Data Agency (as of 2024), Chemicals and Chemical Products Manufacturing (excluding pharmaceuticals), which is directly affected by rising oil prices, comprises 72 companies, accounting for 1.7% of the total, while Rubber and Plastics Manufacturing includes 279 companies, making up 6.7%. Combined, these two industries represent a significant 8.4% share of Busan's manufacturing sector, indicating high vulnerability to rising oil prices. This suggests the widespread impact that a prolonged Middle East situation could have on the entire Busan regional industry.

Crisis Spreading Throughout the Regional Industry

Concerns are being raised that if the Middle East situation is prolonged, the repercussions of rising oil prices could extend beyond specific industries and spread throughout the entire Busan regional industry. In an interview, Shim Jae-yoon, Head of the Economic Policy Division at the Busan Chamber of Commerce and Industry, stated, "The cost increases due to oil prices across all industries are predicted to significantly impact local businesses." As further uncertainty mounts in the global economy, local businesses are experiencing heightened tension.

*Source: YouTube: MBC News (2026-03-07)*

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