President Lee Orders All-Out Response to 'Middle East Crisis'... "Swift Execution of 100 Trillion Won Market Stabilization Program"

Presides Over Emergency Cabinet Meeting on March 5

"Strict Response to Fake News and Market Manipulation... Firm Action Against Hoarding"

"Discuss Measures to Sanction Sharp Increases in Fuel Prices"

"Swiftly Establish Evacuation Plan

On March 5, President Lee Jaemyung ordered an all-government emergency response to minimize the financial, energy, and real economy shocks stemming from the escalation of a Middle East crisis triggered by U.S. and Israeli airstrikes on Iran. Immediately after returning from state visits to Singapore and the Philippines, President Lee convened an emergency cabinet meeting and identified capital market stability, energy supply management, and the protection of overseas nationals as core priorities. He urged thorough and swift measures for every conceivable issue, leaving no detail overlooked.

Yonhap News Agency

At the emergency cabinet meeting held that morning at the Blue House, President Lee stated, "As the crisis in the Middle East intensifies, the global economic and security environment is deteriorating. With financial markets worldwide facing heightened uncertainty, instability in energy supply and exports and imports is expected to cause considerable difficulties in the economy, industry, and people's livelihoods as a whole." He instructed each ministry, "Based on a grave awareness of the situation, we must promptly and meticulously implement comprehensive measures for every foreseeable issue."

President Lee first emphasized a swift response to the financial markets, including the execution of a 100 trillion won market stabilization program. He said, "We must actively respond to increased volatility in financial markets such as stocks and exchange rates." He continued, "The government should accelerate policy efforts to stabilize and strengthen the capital market, and must execute and manage the 100 trillion won market stabilization program, prepared to address funding market instability, in an appropriate and timely manner."

He also announced a strict response to market manipulation taking advantage of the turmoil. President Lee stressed, "Thoroughly block criminal acts such as fake news and price manipulation that tend to proliferate in times like these," and added, "Those who seek to profit by fueling public economic confusion must be held strictly accountable, applying a zero-tolerance policy."

President Lee also called for measures to address energy and price stability. He instructed, "Special attention must be given to instability in energy supply and prices, which directly affect the economy and people's livelihoods," ordering emergency supply measures for crude oil, gas, and naphtha, as well as the diversification of supply sources in the mid- to long-term. Referring to sudden price increases at some gas stations, he said, "There are places rapidly raising fuel prices even though there is not yet objectively serious supply disruption," and ordered strong crackdowns and sanctions against hoarding and profiteering, along with the development of regulatory measures.

He further called for tailored support to mitigate real economy shocks. Highlighting industries such as companies and shipping firms highly dependent on Middle East exports that are at risk of direct losses, President Lee said, "Prompt and extensive policy-based financial support must be provided for sectors directly affected by the current situation." He added, "Although the international environment is very unstable, our country has overcome even greater challenges in the past. Please trust the government and continue your daily lives calmly."

Additionally, President Lee ordered that every possible measure be mobilized to ensure the safety and evacuation of overseas nationals. He said, "Alongside minimizing damages to the economy, industry, and people's livelihoods, securing the safety of our citizens is of utmost urgency." He instructed the relevant authorities to thoroughly identify all local residents—including expatriates, business travelers, students, and tourists—and prepare multiple layers of contingency evacuation plans. He emphasized, "If necessary, establish prompt and safe evacuation plans in cooperation with friendly nations," and ordered the mobilization of all available means, including military aircraft, charter planes, and ground transportation. He also called for strengthened security measures for Korean vessels and crew operating in Middle Eastern waters.

Previously, the government has maintained a response system for the Middle East crisis. On March 3, the Ministry of Economy and Finance and other relevant ministries held an emergency meeting and announced plans to secure oil from outside the Middle East in preparation for a possible de facto blockade of the Strait of Hormuz. They explained that, if necessary, a market stabilization program exceeding 100 trillion won could be activated immediately. Korea depends on the Middle East for approximately 70.7% of its crude oil imports and about 20.4% of its LNG imports.

Financial authorities have also taken preemptive action. The Financial Services Commission announced the launch of a 13.3 trillion won financial support program to assist small and medium-sized enterprises affected by the Middle East crisis. The Commission also stated it would apply a zero-tolerance policy to unfair trading practices such as the spread of fake news and price manipulation capitalizing on market instability.

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