Welcome to the AKBC Business Connect - April 2026
Dear Subscribers,
April has reinforced the strategic importance of the Australia–Korea relationship, as escalating geopolitical tensions, particularly in the Middle East, continue to disrupt global energy markets and place renewed pressure on supply chains across the Indo Pacific.
This month has seen a significant intensification of diplomatic engagement across the region, reflecting the growing urgency of energy security for Australia and its key partners. Foreign Minister Penny Wong’s visit to Japan, China and the Republic of Korea highlights a coordinated effort to secure fuel supplies and reinforce regional cooperation. With the closure of the Strait of Hormuz continuing to constrain global oil flows, the Indo Pacific, which is highly dependent on imported energy, remains particularly exposed.
Importantly, this engagement builds on strong momentum at the leader level in recent months. Anthony Albanese has undertaken regional visits to Malaysia and Brunei, reinforcing Australia’s strategic and economic engagement across Southeast Asia. Similarly, President Lee Jae-myung has been actively strengthening Korea’s international partnerships through visits to India, Vietnam, Singapore and the Philippines. These engagements reflect a clear focus on deepening cooperation across trade, energy security and supply chain resilience in a more uncertain global environment.
For Australia, a consistent message has emerged from these engagements. Australia’s ability to continue supplying critical exports such as LNG, coal and food is directly linked to its access to refined fuels and fertiliser. In practical terms, reliability in one direction depends on reliability in the other. This framing moves the conversation beyond transactional supply arrangements and reinforces the concept of mutual dependence, which is particularly relevant in the Australia–Korea context.
Korea remains one of Australia’s most important sources of refined fuels, including diesel, petrol and aviation fuel, while Australia is a major and trusted supplier of LNG to Korea. This two way flow highlights a central reality. Energy security between Australia and Korea is deeply interdependent.
During her visit to Seoul, Minister Wong will meet with Foreign Minister Cho Hyun to discuss energy security, supply chain resilience and defence cooperation. These discussions are expected to reaffirm both countries’ commitment to working together to address the immediate impacts of the Middle East crisis while strengthening longer term strategic alignment.
The current crisis has also brought into sharp focus the structural vulnerabilities within Korea’s economy. As one of the world’s most trade dependent and energy intensive economies, Korea imports more than 80 percent of its energy, with a significant share sourced from the Middle East. Disruptions to key transit routes such as the Strait of Hormuz therefore have immediate and far reaching consequences.
Initial market responses have included volatility in financial markets, currency pressure and rising input costs across key industries. Sectors such as steel, shipbuilding, automotive manufacturing and semiconductors, which are cornerstones of the Korean economy, are particularly exposed to sustained increases in energy and commodity prices. At the same time, Korean policymakers and industry are responding with urgency, including through the release of strategic reserves and efforts to diversify supply sources.
More broadly, the crisis is accelerating structural shifts that were already underway, including supply chain diversification and the alignment of energy security objectives with the clean energy transition.
For Australia, these developments reinforce both a vulnerability and a strategic opportunity.
Australia’s reliance on imported refined fuels highlights the importance of maintaining stable and trusted supply relationships with partners such as Korea. At the same time, Australia’s role as a reliable supplier of LNG, coal and critical minerals positions it as a key partner in supporting Korea’s energy security and industrial resilience.
There is strong complementarity between Korea’s industrial and technological capabilities and Australia’s resource base. This creates a foundation for deeper collaboration across hydrogen, clean fuels, battery value chains and green metals, alongside traditional energy trade.
However, realising this opportunity will require continued focus on policy clarity and investment certainty. As Korean companies look to diversify supply chains and deploy capital internationally, stable and predictable regulatory frameworks will be critical to attracting long term investment into Australia.
In this environment, the role of the Australia–Korea Business Council is both practical and strategic. AKBC continues to provide a platform for engagement between government and industry, supporting members with insights, connections and advocacy at a time of heightened uncertainty. As the operating environment becomes more complex, the value of these trusted institutional relationships becomes increasingly evident.
The Chair and I will travel to Korea from 12 to 14 May to meet with key stakeholders and continue advancing engagement across the bilateral relationship. This visit will provide an opportunity to reinforce AKBC’s role on the ground and support members in navigating the evolving operating environment.
We are also continuing preparations for the 47th AKBC–KABC Joint Meeting in Adelaide on 1–2 September 2026. As our flagship annual forum, the Joint Meeting will bring together senior leaders from both countries to address these challenges and identify practical pathways for cooperation.
The Australia–Korea relationship is often under recognised, yet its importance becomes most evident in periods of disruption. With complementary economies, shared strategic interests and deep institutional ties, Australia and Korea are well positioned to navigate this period of uncertainty together.
AKBC will continue to play an active role in supporting this partnership and ensuring that our members are well placed to respond to both the risks and opportunities ahead.
In an increasingly uncertain global environment, the Australia–Korea partnership is not just enduring, it is essential.
Kind regards,
Liz Griffin
Chief Executive Officer
Australia–Korea Business Council