President Lee Jae Myung (right) and Japanese Prime Minister Sanae Takaichi (left) on May 19 hold extended summit talks at a hotel in Andong, Gyeongsangbuk-do Province. (Cheong Wa Dae)

By Jeong Euiseok

The Ministry of Trade, Industry and Energy says it will conclude an agreement with Japan on a bilateral swap system for crude oil and petroleum products in a "win-win" framework that benefits both countries.

Reports by Yonhap News and other domestic media said Deputy Minister Yang Gi-uk, who also heads the ministry's Office of Industry, Trade and Resource Security, said this on May 21 at a briefing held at Government Complex-Sejong in Sejong.

"Though Japan has a larger stockpile and storage capacity than we do, we have the advantage in refining capacity, so there are areas where both sides can achieve a 'win-win outcome,'" he added.

"I heard that there is demand in Japan because regions bordering the East Sea find it more cost-effective to import (petroleum products) through the Ulsan refinery than move them within Japan."

"We've agreed on the broad direction of the swap but need to make it more concrete through dialogue by the public, private and government sectors," he added. "We will continue to cement the agreement."

Earlier in their summit on May 19 in Andong, Gyeongsangbuk-do Province, both sides agreed to raise cooperation in the mutual supply of crude oil and petroleum products and crude oil procurement and transportation, as well as coordinate on the supply and demand for liquefied natural gas (LNG).

Bilateral energy cooperation is accordingly expected to speed up based on an accord on LNG supply and demand cooperation signed on March 14 by Korea Gas Corp. and the Japanese energy company JERA.

As of this month, Korea has secured crude oil and naphtha volumes of some 90% of the level of previous years.

innocence@korea.kr