As the war spreads across the Middle East following U.S. and Israeli airstrikes on Iran, President Lee Jae-myung on the 9th said, "The government must prepare preemptive response measures with an extraordinary resolve, keeping even the worst-case scenario in mind." The government, mindful of concerns over a surge in oil prices, is considering introducing a maximum price designation system by region and fuel type, while also reviewing options to expand the current fuel tax cuts of 7% (gasoline) to 10% (diesel and LPG butane) or to release strategic stockpiles.
Lee said this as he convened an emergency economic review meeting on the Middle East situation at Cheong Wa Dae that day, noting, "The crisis in the Middle East is acting as a significant burden on our economy, which has high dependence on global trade and imports of Middle Eastern energy." The meeting was attended by the Cheong Wa Dae staff and Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Finance and Economy, as well as the Ministers of the Ministry of Foreign Affairs, the Ministry of the Interior and Safety, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade, Industry and Resources, and the Ministry of Climate, Energy and Environment (MCEE).
He especially emphasized strong government-level measures against concerns over high oil prices and energy supply. Lee said, "It would be good to swiftly identify alternative supply routes that do not pass through the Strait of Hormuz in coordination with strategic partner countries," adding, "We must thoroughly crack down on illegal acts such as collusion by refiners and gas stations, hoarding, and stockpiling, and impose stern sanctions equivalent to several times the gains that would result from violations."
The government said it would swiftly set maximum fuel prices by region and fuel type. Lee said, "For petroleum products that have been raised excessively in recent days, we must swiftly introduce and boldly implement a maximum price system," adding, "Given that the burden from higher energy prices hits ordinary people first and hardest, we need to craft careful and effective measures."
The 100 trillion won stock market stabilization program will also be expanded. Lee said, "If necessary, we will proactively expand the market stabilization program that has been prepared in the amount of 100 trillion won, and the government and the Central Bank should also preemptively prepare additional measures." He also said unjust profits would be punished strictly, adding, "Let's use this situation as an opportunity to accelerate reform tasks for structural improvements in our capital market."