Emergency Foreign Ministers Meeting Held Over US-Iran Clash: "Impact Limited but Situation Serious" (Comprehensive)

24-Hour Monitoring System Activated and On-Site Public Safety Inspections Strengthened
7th: Ministry of Economy and Finance 1st Vice Minister Chairs Expanded Macroeconomic and Financial Meeting
Plan for Practical Review of Trends and Response Measures

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] As tensions between the United States and Iran escalate, causing instability in the international financial markets, the government has decided to operate a 24-hour monitoring system and expand the joint inspection team centered around the Expanded Macroeconomic and Financial Meeting. In particular, a cross-ministerial and inter-company emergency contact network will be established at Middle East construction sites, and frequent communication with vessels near the Strait of Hormuz will be maintained to ensure the safety of citizens. Additionally, emergency response measures such as releasing strategic oil reserves of around 200 million barrels will be considered if necessary.

On the afternoon of the 6th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired an "Emergency Ministerial Meeting" on the Middle East situation at the Government Seoul Office and discussed these measures. The attendees agreed that although the impact on our economy is currently limited, the situation is serious. They decided to monitor related developments closely and take phased actions according to pre-established emergency plans if needed.

First, the government will operate a 24-hour monitoring system and expand the joint inspection team centered on the Expanded Macroeconomic and Financial Meeting to thoroughly check not only the financial and foreign exchange markets but also exports, oil prices, and overseas construction situations, responding swiftly as necessary. Each ministry will also operate situation rooms related to exports (Ministry of Trade, Industry and Energy), oil supply (Ministry of Trade, Industry and Energy), overseas construction (Ministry of Land, Infrastructure and Transport), and shipping (Ministry of Oceans and Fisheries).

In case of disruptions in oil and gas supply, the government plans to promptly secure additional quantities necessary for supply stability by securing alternative import sources. Depending on the situation, emergency response measures such as releasing strategic oil reserves of around 200 million barrels will also be considered. This will involve holding internal crisis assessment meetings, releasing strategic reserves (as of the end of November last year, the government holds 96.5 million barrels, and including private reserves and stocks, the total is about 200 million barrels), and implementing oil demand reduction measures in phases.

Furthermore, the government will ensure the safety of citizens residing in related countries. Currently, each ministry has established an emergency contact network with companies to confirm the safety of citizens at Middle East construction sites. To minimize the impact on overseas construction projects, hotlines will be set up with construction companies and overseas diplomatic missions, and phased response measures will be taken. To strengthen the safety of Korean vessels near the Strait of Hormuz, vessels will be monitored more closely, and safety checks will be conducted once daily via satellite phone. The Ministry of Oceans and Fisheries (situation room) will also maintain a constant communication system with shipping companies.

Meanwhile, on the following day, the 7th, the Expanded Macroeconomic and Financial Meeting (chaired by the 1st Vice Minister of the Ministry of Economy and Finance) will be held to review related trends and response measures in detail. On the 8th, the first Economic Vitality Measures Meeting of the year will convene, and the situation will be included as an agenda item for further discussion.

This content was produced with the assistance of AI translation services.