LNG Shock Rocks Asia: South Korea, Taiwan 'Particularly Exposed' to Price Surge

• South Korea and Taiwan are highly vulnerable to a sustained LNG price surge due to Middle East supply disruptions, according to MUFG Bank.
• Both economies depend heavily on imported LNG and natural gas for power generation, making them susceptible to elevated prices.
• Qatar's largest LNG plant shutdown after Iranian attacks triggered a sharp price spike; 86% of LNG through Hormuz goes to Asia.
• Higher LNG prices risk inflation, complicate monetary policy for Bank of Korea and Taiwan's central bank, and impact KOSPI.
• Export-oriented economies face squeezed trade balances, currency pressure, and increased input costs for manufacturers.