Presidential Office on Israel-Palestine Conflict: "Strengthening Monitoring with Heightened Vigilance... Minimizing Economic Impact"

Related Ministries and Financial Authorities Closely Monitoring... "Uncertainty Likely to Increase" Over Sharp Oil Price Surge
"Domestic Companies and Households to Minimize Impact... Will Respond Based on Oil Price Trends"

The Presidential Office issued a statement on the 9th regarding the armed conflict between Israel and the Palestinian militant group Hamas, saying, "We will maintain heightened vigilance, strengthen market monitoring, keep all possibilities open, and do our best to minimize the impact on our economy."

Choi Sang-mok, the Senior Secretary for Economic Affairs, held a briefing at the Yongsan Presidential Office in the afternoon and stated, "Relevant ministries and financial authorities are closely examining the current market situation and anticipated impacts following the outbreak of the conflict."

[Image source=Yonhap News]

The clash between Israel and Hamas is once again shaking the global economy. International oil prices surged by 4%, raising concerns that the upward momentum in oil prices may accelerate. If U.S. Treasury yields continue to rise sharply as they did last week, the overall burden on the U.S. economy could increase, which is expected to have a considerable impact on the domestic market as well.

In response, Senior Secretary Choi said, "Most financial markets are closed today, making it difficult to fully assess the market situation at this early stage," but added, "Given the uncertainty of the situation's development, the government will monitor it with heightened vigilance."

Regarding concerns over the sharp rise in international oil prices, he said, "Although recent oil price trends remain high, we had hoped that uncertainty would decrease, but it seems that the conflict will increase uncertainty." He further explained, "The impact of oil prices on our economy is significant," and added, "As the President mentioned, it also contributes to 'cost-push inflation.'"

He continued, "Since this is an external factor, there is little we can do directly, but there are measures such as fuel tax adjustments and several domestic policies to minimize the impact on domestic companies and households." However, he noted, "Whether there are ways to reduce the cost burden on domestic households and businesses will depend on how oil prices and the situation develop, and we will respond accordingly," adding, "Keeping all possibilities open and preparing for them includes all these aspects."

Regarding prospects for additional public utility fee hikes, Senior Secretary Choi stated, "The government is fully considering the increased market volatility and the growing difficulties faced by the public, and will carefully deliberate and consult with everyone."

Meanwhile, the Presidential Office continues to monitor the security situation related to this incident. It is also checking the potential impact on the domestic economy, including the surge in international oil prices, as well as the safety of Koreans residing locally, including expatriates and pilgrims.

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