Government Launches Emergency Response System for 'Middle East Instability'... "Situational Measures as Needed" (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwangho Lee] As military tensions between the United States and Iran escalate, the government has also entered an emergency response system.

On the afternoon of the 8th, Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, chaired the 'Joint Response Team Meeting of Related Ministries on the Middle East' at the Government Seoul Office and reviewed the impact of instability in the Middle East region on our economy.

The government had earlier established a response system by organizing five response teams under the overall leadership of the First Vice Minister of the Ministry of Economy and Finance: ▲Financial Market (Financial Services Commission, Bank of Korea, etc.) ▲International Oil Prices (Ministry of Trade, Industry and Energy) ▲Real Economy (Ministry of Industry, Bank of Korea, etc.) ▲Overseas Construction (Ministry of Land, Infrastructure and Transport) ▲Maritime Logistics (Ministry of Oceans and Fisheries, Ministry of Foreign Affairs, etc.), with each responsible vice minister in charge of their respective teams.

The holding of the joint response team meeting of related ministries on this day was a follow-up measure related to the response to instability in the Middle East region, decided at the first Economic Ministers' Meeting of 2020 chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki earlier that morning.

Each response team monitored domestic and international financial market trends, international oil price trends, and energy supply and demand situations such as oil and gas, while also checking the safety management of Korean companies stationed in the Middle East and the safety status of ships passing through the Strait of Hormuz.

The Financial Services Commission held an emergency financial market inspection meeting chaired by the Secretary-General to assess the current situation and discuss future risk factors.

The Bank of Korea also held a Monetary and Financial Countermeasures Team meeting chaired by Deputy Governor Yoon Myeon-sik and decided to operate a 24-hour monitoring system to closely examine market conditions. The Bank of Korea plans to take market stabilization measures as necessary.

The Ministry of Industry also held an emergency situation inspection meeting on oil and gas with the refining industry, chaired by Vice Minister Jeong Seung-il, to review the domestic energy supply status in relation to Iran's attack on the U.S. military base in Iraq.

The Ministry of Industry decided to additionally establish a Middle East crisis response team at the Korea Petroleum Association, in addition to the currently operating oil supply situation room.

Korea National Oil Corporation is strengthening its readiness to immediately release reserve oil in case of deterioration in the oil supply situation, and private refiners plan to prepare detailed emergency response plans such as securing alternative import volumes.

Vice Minister Jeong emphasized, "A serious situation continues in the Middle East region, which accounts for a large portion of our country's crude oil and liquefied natural gas (LNG) imports," adding, "The government, related agencies, and relevant industries will establish a joint all-out response posture."

A government official said, "We will conduct 24-hour monitoring of each sector centered on the respective response teams and activate the pre-prepared contingency plan in case of situation deterioration," and added, "If necessary, we will selectively take measures according to the situation to respond proactively, swiftly, and accurately."

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