Finance Minister Koo Yun-cheol speaks during a meeting of economy-related ministers at the government complex in Seoul, Wednesday. Yonhap
Korea will mobilize all available economic policy tools, including a possible supplementary budget, and activate an emergency economic response system to respond to economic uncertainties stemming from an ongoing Middle East crisis, Seoul's finance chief said Wednesday.
Financial markets showed heightened volatility, with the Korean won falling sharply against the U.S. dollar and domestic fuel prices spiking following U.S.-Israeli strikes on Iran and Tehran's retaliatory attacks in the region.
"The government will push sufficient support measures, including a supplementary budget if necessary, and utilize all available policy tools to minimize the impact of the Middle East situation on livelihoods, the economy and industries," Finance Minister Koo Yun-cheol said while presiding over a meeting of economy-related ministers.
As part of the response, the government plans to introduce a temporary cap on domestic fuel prices this week.
Authorities are also preparing additional measures, including a ban on hoarding, and price gouging of petroleum products and fuel-linked subsidies for diesel used by freight trucks, buses and taxis.
To address uncertainty surrounding energy supplies, particularly concerns over possible disruptions to shipping through the Strait of Hormuz, a key global energy route, the minister said the government would adopt a zero-tolerance stance toward potential collusion by oil refiners.
"We will prevent hoarding and refusal to sell by oil refiners and gas stations by introducing a public notice banning stockpiling and speculative practices involving petroleum products," Koo said.
Korea, which depends heavily on imported energy, is particularly vulnerable to external price shocks that often fuel inflation.
Source: Korea Times News
