Democratic Party and Business Leaders Discuss Middle East Crisis: "Swift Passage of Special Act on Investment in the US Is Top Priority"

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Discussions on Stabilizing Energy Supply and Capital Markets
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The Democratic Party of Korea and the business community discussed response measures regarding the crisis emerging in the Middle East. The Democratic Party defined the current situation as a "complex crisis" resulting from the combination of instability in the Middle East and ongoing tariff negotiations with the United States, and decided to seek swift countermeasures. Discussions included not only energy supply measures for crude oil and LNG, but also the need for responses related to the capital market.

On March 5, Han Jungae, policy chief of the Democratic Party of Korea, along with lawmakers from the National Assembly's Foreign Affairs and Unification Committee, the Trade, Industry, Energy, SMEs, and Startups Committee, and the Strategy and Finance Committee, as well as Changbeom Kim, Vice Chairman of the Federation of Korean Industries, Sangshik Jang, Director General of the International Trade and Commerce Research Institute at the Korea International Trade Association, Younghee Kim, Vice President of Korea Trade-Investment Promotion Agency (KOTRA), and other business representatives, gathered to hold an "Urgent Meeting on the Current Situation in the Middle East." The Democratic Party agreed to listen to specific requests and suggestions from the business community.

On the 5th, Han Jung-ae, the policy chief of the Democratic Party of Korea, spoke at an urgent meeting between the Democratic Party of Korea and the business community concerning Middle East issues held at the National Assembly Members' Office Building. Photo by Yonhap News

Han Jungae, the policy chief, stated, "We are facing a complex crisis combining Middle East instability and the US tariff negotiations." She added, "We have gathered to hear about the ripple effects on export industries and to develop countermeasures at the National Assembly level." Han also noted, "Fortunately, the Special Committee on the US Investment Special Act is operating normally and the legislation process is being discussed. We expect to reach an agreement on March 9 and to pass the Special Act at the plenary session on the 12th, which would help resolve trade risks." However, she cautioned, "If the situation in the Middle East escalates, there is a possibility that projects in Saudi Arabia and the United Arab Emirates (UAE) may be delayed or even derailed." She explained, "The government is preparing a 100 trillion won market stabilization program and plans to provide financial support through the Export-Import Bank of Korea to small and medium-sized enterprises (SMEs) and mid-sized companies that may experience export disruptions due to this crisis."

Lawmaker Jung Taeho, the Democratic Party's secretary on the Strategy and Finance Committee, said, "About two-thirds of the US Investment Special Act has been reviewed. The review by the subcommittee should be almost complete today, and I expect that the special committee will approve it on the 9th, with the plenary session passing it on the 12th." Assemblyman Cho Jeongsik, who also serves as Special Political Advisor to the President, stated, "At the latest, the US Investment Special Act needs to be processed next week to eliminate one source of uncertainty. If oil prices and logistics supply chain disruptions are prolonged, there could be complex pressures such as increases in raw material prices, so swift action at the government level is needed."

There were also calls for efforts to secure supply chains for crude oil and LNG. Lawmaker Ahn Dogeol from the Democratic Party said, "Seventy percent of our crude oil and 20 percent of our LNG come from the Middle East via the Strait of Hormuz, so a disruption in supply would be a serious problem. In the case of crude oil, our reserves are sufficient for about 270 days, so we are fine, but for LNG the reserves last only about nine days, which is an issue. We must pool our wisdom to develop stable supply measures."

Changbeom Kim, Vice Chairman of the Federation of Korean Industries, expressed concern, saying, "Our companies are increasingly facing hardships and concerns as volatility in the US trade environment grows and now, on top of that, the Middle East situation has erupted. There are worries that this could put a damper on the recent positive momentum in our economy." He continued, "If the situation with Iran becomes prolonged, this could pose a significant burden not only on the energy and shipping industries, but across exports and Middle East projects in general. The restructuring in the petrochemical industry has only just begun, so the difficulties faced by companies in related sectors are expected to intensify." He added, "Given variables such as energy prices, logistics costs, and exchange rates, as well as changes in the structure of trade supply chains including both tariff and non-tariff barriers, comprehensive government support and response are now necessary."

Meanwhile, Assemblyman Oh Gihyeong, who chairs the Democratic Party's "Korea Premium K-Capital Market Special Committee," commented, "I think the reaction of the capital market is somewhat excessive. While we cannot say there is an immediate solution, I believe the top priority is to maintain a consistent policy stance for the capital market." Oh added, "The two key factors driving the stock market's rise—the issue of governance transparency and semiconductor performance—remain unchanged. The business community, government, and political circles must respond to the situation in a more stable manner."

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