Korea Inc. reviews Middle East plans, watches Strait of Hormuz closely after airstrikes on Iran

From tech giants like Samsung and LG to food companies, Korean firms are reviewing their expansion plans in the Middle East following the Israel-U. S. airstrikes on Iran and the closure of the Strait of Hormuz, a critical maritime chokepoint.

A handout photo made available by Iran's Islamic Revolutionary Guard Corps' official website Sepahnews on Feb. 16 shows IRGC members participating in a military drill in the Persian Gulf, southern Iran. [EPA/YONHAP]

From tech giants like Samsung and LG to food companies, Korean firms are reviewing their expansion plans in the Middle East following the U.S.-Israeli airstrikes on Iran and the closure of the Strait of Hormuz, which functions as a critical maritime chokepoint for global energy and trade.

Samsung Electronics and LG Electronics, which have targeted the Middle East market, are reviewing their regional operations and preparing contingency measures, according to industry sources on Monday.

A prolonged conflict in the region could delay or scale back large development projects in nearby countries and reduce consumer demand.

Korea’s electronics industry has promoted a “Global South” strategy to offset slowing markets in North America and Europe by expanding into emerging economies in the Middle East, Asia and South America.

Samsung Electronics secured a 36 percent share of the Middle East's smartphone market in the fourth quarter of last year and led the region’s organic light-emitting diode (OLED) TV market with a 52.6 percent share of cumulative revenue through the third quarter of 2025. But the company now faces concerns over weakening demand.

Samsung's logo is seen at the Samsung Electronics' building in southern Seoul on July 5, 2024. [AP/YONHAP]

LG Electronics, which just held a large product launch event called LG InnoFest in the United Arab Emirates (UAE) in February, now risks seeing its marketing efforts lose impact.

LG Electronics also plans to supply high-efficiency heating, ventilation and air conditioning systems and other cooling solutions to the UAE and Saudi Arabia, while Samsung Electronics is participating in the Neom City project, a massive new city project that Saudi Arabia is building along the Red Sea as part of efforts to diversify its economy beyond oil.

If tensions spread across the Middle East, additional government-led infrastructure investment could slow.

Korean food exporters also fear setbacks after years of expansion into the Middle East.

K-food exports to the Middle East rose 22.6 percent on year to $410 million last year, according to the Ministry of Agriculture, Food and Rural Affairs.

Samyang Foods posted 66 billion won ($45 million) in sales in the region in 2025, up 32 percent from the year earlier, driven by strong demand for Korean ramyeon.

Hyundai Green Food runs group catering operations in Saudi Arabia, the UAE and Iraq. Bakery chain Paris Baguette has also been preparing to enter the Middle East market. To reach Muslim consumers, more companies are obtaining or applying for Halal certification, which confirms that a product complies with Islamic dietary laws and meets standards required for Muslim consumers.

If the conflict in the Middle East continues, companies could face higher shipping costs and weaker sales in the region, which would reduce profits.

A map showing the Strait of Hormuz and Iran is seen behind a 3D printed oil pipeline in this illustration from June 22, 2025. [REUTERS/YONHAP]

“Companies that planned to actively expand into the Middle East based on growth potential have little choice but to worry that prolonged tensions could disrupt their business,” a food industry source said.

Higher oil prices and shipping costs are also becoming a concern.

“Rising global oil prices are increasing production and shipping costs, reminding us of the difficulties we faced at the start of the Russia-Ukraine war in 2022,” another food industry source said.

The Korean government on Monday indicated that the Strait of Hormuz is not currently blocked, while noting that a closure could occur at any time as attacks in nearby waters intensify. Global analysis firms project that oil prices could rise to $100 per barrel if Iran closes the Strait of Hormuz.

Shipping companies are also looking at how this could affect them. Even if shipping companies charge exporters and other cargo owners higher freight rates, the companies would still face higher fuel costs, longer routes and higher insurance premiums because of safety risks. These added costs could then affect exports such as weapons, cars and food.

A vessel is seen anchored off the coast of Dubai, United Arab Emirates, on March 1. [EPA/YONHAP]

One HMM container ship that had been sailing through the Strait of Hormuz exited the area on Sunday, and sources have not identified any unusual developments involving Korean oil tankers or bulk carriers, according to government and industry on Monday.

“On site, GPS interference has occurred, and some vessels have turned off their GPS systems over concerns that exposing their location could pose risks,” a Ministry of Oceans and Fisheries official said. “We are monitoring shipping companies and the situation on the ground while checking the exact number of vessels in nearby waters.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY LIM SUN-YOUNG, KO SUK-HYUN AND YI WOO-LIM [paik.jihwan@joongang.co.kr]