Koo Yun-cheol, Deputy Prime Minister for Economic Affairs and Minister of the Ministry of Economy and Finance, said on the 11th that "we will use all possible policy tools, including an extra budget."
Deputy Prime Minister Koo presided over the first emergency economic ministers' meeting that day and stated accordingly, noting that "as the Middle East situation has continued for the 12th day, it is significantly increasing volatility across energy and financial markets."
Starting that day, the government decided to convert the existing economic-related ministers' meeting into an emergency economic ministers' meeting and hold it weekly. It also decided to elevate the joint emergency response team of related agencies to the Vice Minister level to check economic conditions more closely.
Deputy Prime Minister Koo said the government will consider cutting fuel taxes while monitoring oil price trends to ease the burden on people's livelihoods from high oil prices. He said, "We will temporarily raise the diesel price-linked subsidy for freight trucks, buses and taxis, and actively support small business management stabilization vouchers and emergency management stabilization funds."
He also said the government will respond with a zero-tolerance policy to self-dealing that takes advantage of the crisis. Deputy Prime Minister Koo said, "We will implement a maximum price system for petroleum this week and promptly disclose the target fuel types and price criteria," adding, "We will also establish a notice banning hoarding of petroleum products to prevent stockpiling and refusal to sell by refiners and gas stations."
He added that the government will closely monitor market-disrupting acts such as spreading fake news or manipulating prices that ride on financial market unrest, and will crack down sternly when detected.
The government will expand, if necessary, the existing market stabilization program of more than 100 trillion won and, in close coordination with the Bank of Korea, will also carry out additional market stabilization measures in a timely manner, such as emergency buybacks and simple purchases of Treasury bonds.
For naphtha, which has a high dependence on the Middle East, the government plans to swiftly prepare fiscal and financial support measures to secure alternative import sources and procure alternative feedstocks.
Deputy Prime Minister Koo said, "Korea's economy has solid fundamentals in key industries such as semiconductors and possesses crisis response capacity, including holding 208 days' worth of strategic oil reserves under International Energy Agency (IEA) standards," adding, "Please trust the government and continue everyday economic activities calmly."