South Koreas total reliance on Oil imports has led to a policy of securing and diversifying the countrys oil supply.  South Korea has both a short-term and a long-term approach to fulfilling its oil needs.  In the short-term, it has developed a strategic Petroleum reserve, which is managed by the state-owned Korea National Oil Corporation (KNOC). Strategic stocks are roughly equivalent to a 90-day supply.  The period of "import cover" was expanded from 60 days in early 2001, in part to meet the requirements for entry into the International Energy Agency (IEA).  This reserve serves as a safety net against supply disruptions.
In the long term, KNOC is pursuing equity stakes in oil and gas exploration around the world. KNOC has 17 overseas exploration and production projects in 13 countries.  This includes four producing fields in Yemen, Argentina, Peru, and the North Sea, five fields under development in Kazakhstan, Yemen, Venezuela, Libya, and Vietnam, and two newly-awarded exploration blocks offshore from Australia, which were acquired in May 2005.  KNOC also is exploring domestic blocks offshore from South Korea.  KNOC reported a new oil find in August 2001 at the Vung Tau site offshore from Vietnam, which began commercial production in 2003.  Recoverable reserves at Vung Tau are estimated at 420 million barrels.  The South Korean government has stated that it plans for KNOC to provide for 10 percent of the countrys oil needs by 2008, a date which was recently moved forward from 2010. KNOCs output, however, was only covering 4 percent of South Koreas import requirements as of late 2005.