To ease raw material supply instability from the prolonged Middle East crisis, the government designated naphtha as an "economic security item" and will provide emergency financial support worth 1.5 trillion won to corporations damaged by supply chain disruptions.
Koo Yun-cheol, Deputy Prime Minister and Minister of the Ministry of Economy and Finance, said at the Emergency Economic Ministers' Meeting and the Supply Chain Stabilization Committee on the morning of the 18th, "Timing is the key to crisis response," adding, "We will swiftly ease the burden on our economic actors."
First, the government decided to temporarily designate "naphtha," which has high dependence on the Middle East, as an economic security item. Deputy Prime Minister Koo said, "We will closely track naphtha supply and demand trends and corporations' difficulties and implement active measures such as securing alternative import sources and export restrictions."
The government also plans to create "special support for Middle East damage response" within the Supply Chain Stabilization Fund. Deputy Prime Minister Koo said, "We will expand financial support to 1.5 trillion won," adding, "For damaged corporations, we will cover increases in alternative import purchase expense and provide emergency operating funds." He also said, "For corporations handling items highly dependent on the Middle East, we will offer a preferential interest rate of up to 2.3 percentage points (p)."
Regarding the petroleum product price cap implemented on the 13th, Deputy Prime Minister Koo said, "As refiners' supply prices have been cut, retail consumer prices at gas stations must also fall without delay," adding, "We will strictly crack down on unfair practices such as hoarding and refusal to sell."
He also said, "To secure energy supply, we will find additional alternative supply sources and strengthen demand reduction efforts such as restricting refiners' exports and raising nuclear power utilization rates," adding, "If necessary, we will additionally review multifaceted demand-management measures such as odd-even driving days for cars. We earnestly ask for the public's understanding and participation."
Regarding the "war supplementary budget" now under way, the government said, "To ease polarization, we will target vulnerable groups and regions—sectors facing hardship—precisely and provide dense support."