The South Korean government has announced comprehensive economic measures to address the impacts of the ongoing conflict in the Middle East, fearing effects on the economy and surging oil prices.
On 11 March 2026, Koo Yun-cheol, South Korea's Minister of Finance, revealed during an economic ministers' meeting that the government would mobilize all policy tools to alleviate impacts on the economy, industry, and citizens' cost of living following attacks involving the U.S., Israel, and Iran, which have caused significant financial market volatility.
The Finance Minister stated that the Korean won has rapidly depreciated against the U.S. dollar, while domestic fuel prices have surged. The government may propose additional budget allocations if necessary and activate an emergency economic response system to manage a potentially escalating situation and mitigate effects on the public. A temporary fuel price ceiling is expected to be set within this week.
Authorities are also preparing further measures such as banning product hoarding and price gouging on fuel, subsidizing diesel costs for trucks, buses, and taxis. Additionally, the government is closely monitoring energy risks, especially the possibility of disruption in oil transport through the Strait of Hormuz, a vital global oil shipping route.
Source: Yonhap