Industry Minister Kim Jung-kwan attends a meeting at the headquarters of the Korea Chamber of Commerce and Industry in Seoul, Monday, to respond to the potential economic fallout from the Middle East conflict. Yonhap
South Korean companies are seeking responsive measures to cope with soaring international oil prices as turmoil in the Middle East continues, industry sources said Monday, while the government called for efforts to stabilize domestic fuel prices.
Major companies here, including Samsung Electronics, SK , Hyundai and Hanwha Group, have held emergency meetings over the past few days to monitor the volatility in the global energy market and come up with ways to minimize the impact of the Middle East crisis on their businesses, according to the sources.
In particular, the airline and shipping industries, heavily affected by fuel prices, have been considering various risk-hedging measures.
Flag carrier Korean Air said it is currently hedging up to 50 percent of its expected annual fuel consumption and will flexibly respond to fluctuating oil prices, while HMM, Korea's largest shipping company, said it plans to soon begin imposing fuel surcharges.'
Containers are stacked at a port in the southeastern city of Busan, Friday. Yonhap
Other companies are looking for ways to respond to rising raw material prices and foreign exchange volatility as well, amid concerns the Middle East crisis may also exacerbate global economic slowdown and create stagflation in the Korean economy.
A recent report by Hyundai Research Institute showed that Korea's economic growth rate in 2026 could fall by 0.3 percentage point if the average oil prices this year hover around the US$100 per barrel level.
Brent crude oil prices, the international oil benchmark, reached $107.54 per barrel at 7:26 a.m., jumping 14.85 percent from the previous day to surpass the psychologically important barrier of $100 per barrel.
A sign at a gas station in Seoul shows the regular gas price of 2,287 won per liter, Sunday. Yonhap
Source: Korea Times News
