President Lee Jae-myung has directed his administration to minimize the impact of the escalating conflict in the Middle East on the South Korean economy and its citizens, particularly focusing on rising energy costs. The directive came during an emergency cabinet meeting held Tuesday, according to reports from Yonhap News Agency and multiple Korean news outlets.
President Lee, according to a statement released by the presidential office, emphasized the need to “mobilize all national capabilities” to mitigate the effects of the crisis on everyday life. The situation in the Middle East, he stated, is creating uncertainty across energy supplies, shipping logistics and the financial sector.
The President specifically highlighted the increasing burden on sectors directly affected by soaring fuel prices, including freight transport, delivery services, and agricultural businesses. He instructed the government to actively develop and swiftly implement policies to alleviate these pressures, mentioning potential measures such as the implementation of a fuel price cap, adjustments to energy taxes, and direct financial support to consumers. Further financial and fiscal support measures are also under consideration, according to the presidential office.
Kim Yong-beom, the President’s Chief of Staff for Policy, had previously announced plans to implement a fuel price cap within the week, as reported by news agencies. The presidential office is also preparing for a potential long-term crisis, considering extending the price cap in two-week intervals, expanding fuel tax reductions, and providing direct consumer subsidies. A supplementary budget is also being seriously considered, Kim indicated.
President Lee acknowledged the limitations of controlling external factors but expressed confidence that proactive policy measures could transform the challenges into opportunities. He urged officials to go beyond existing protocols and policies, emphasizing the need for speed and decisive action to stabilize markets and public sentiment.
The National Security Council (NSC) convened an emergency meeting on February 28th, shortly after the United States and Israel launched strikes against Iran, to assess the regional situation and the safety of South Korean citizens in the area, according to a statement from the presidential office. The NSC also evaluated the potential impact on South Korea’s security and economy, and reviewed current measures and future contingency plans. The results of the NSC meeting were reported to President Lee.
Earlier, on February 28th, President Lee received a briefing on the situation in Iran and instructed officials to prioritize the safety of South Korean nationals in Iran and neighboring countries, as reported by both MBC and Newsis. The President’s directives followed confirmation from former U.S. President Donald Trump that the U.S. Had initiated attacks within Iran.
