Korea is the fourth largest oil importer and the eighth biggest oil consumer in the world, but its ability to respond to potential oil crises was poorer than major oil importing countries considering its high dependence on Middle Eastern crude and its low self-sufficiency rate.

The two oil shocks of the 1970s shook the national economy and people’s livelihoods. To prevent another crisis, the government established KNOC in 1979. Since then, the corporation has been in charge of strategic oil stockpiling for a consistent oil supply, stable oil prices and economic development.