President Lee Jae Myung speaks during an emergency economic meeting on the Middle East situation at Cheong Wa Dae in Seoul, Monday. Yonhap
President Lee Jae Myung convened an emergency economic meeting Monday, ordering the immediate implementation of a maximum price system for petroleum products, along with a crackdown on price manipulation, to shield the public from turmoil in the Middle East.
Warning that the regional crisis had created “extraordinary” uncertainties for the energy-dependent country, Lee also directed officials to secure alternative supply routes that bypass the Strait of Hormuz, while vowing to strictly punish any hoarding or collusion in the market.
“As the situation surrounding energy supply and household economic anxiety is serious, extraordinary countermeasures commensurate with the circumstances are needed," Lee said during the meeting. "In cooperation with our strategic partner countries, we should swiftly identify alternative supply routes that do not pass through the Strait of Hormuz.”
He also called for strict enforcement against illegal practices in the domestic oil market, including collusion among refiners and gas stations, hoarding and speculative stockpiling.
“Illegal activities such as collusion among oil refiners and gas stations, hoarding and speculative stockpiling must be thoroughly investigated and strictly cracked down on,” Lee said. “If violations occur, severe penalties amounting to several times the profits gained from such actions should be imposed.”
Beyond price controls, the president ordered an aggressive crackdown on market abuses, including hoarding and collusion by refineries and gas stations. Lee said any illegal attempts to profit from the crisis should be met with penalties several times greater than the illicit gains, calling it a necessary step to prevent the rising cost of energy from falling squarely on the shoulders of the working class.
Warning that prolonged instability in the Middle East could significantly affect the real economy, Lee called for comprehensive contingency planning using all available policy tools.
To address potential volatility in financial and foreign exchange markets, he instructed authorities to closely examine hidden risks and prepare detailed response plans. If necessary, the government may expand an existing 100 trillion won ($75 billion) market stabilization program and coordinate additional measures with the central bank.
Lee also warned that authorities will strictly punish any groups seeking to exploit market instability for unfair gains.
Source: Korea Times News
