Minister Kim Jeong-Kag: "Maximum Price System for Petroleum Products to Be Implemented Soon... Need for Management of Oil Refiners' Excess Profits"

"Concerns That Disclosing Details Could Stimulate the Market"
Announcement Timing Will Be "Not Too Late"

On Windfall Tax: "No Government Discussion Yet... Will Actively Participate if Debated in the National Assembly"

Minister of Trade, Industry and Energy Kim Jeong-Kag is responding to questions from lawmakers during the full meeting of the Industry, Trade, Energy, Small and Medium Enterprises Committee held at the National Assembly on the 9th. From left to right: Moon Sinhak, Deputy Minister of Trade, Industry and Energy; Minister Kim; Han Seongsuk, Minister of SMEs and Startups. Photo by Yonhap News.

Kim Jeong-Kag, Minister of Trade, Industry and Energy, stated on March 9 that preparations for implementing the maximum price system for petroleum products are in their final stages, in response to the recent sharp rise in domestic petroleum product prices due to increases in international oil prices. He also expressed the view that excessive profits by oil refiners may require management at the level of the broader community.

At the plenary session of the National Assembly's Industry, Trade, Energy, Small and Medium Business Committee held on this day, Minister Kim responded to a question from Assemblyman Jang Cheolmin of the Democratic Party of Korea regarding the operating method and timing of the maximum price system for petroleum products, saying, "Preparations to implement the system are complete," and added, "We will announce the specific details at a not-too-distant date."

Regarding the detailed criteria, Minister Kim said, "It is difficult to explain specifics at this point," and explained, "If we disclose the details, it could act as a trigger and lead to changes in price policies or behaviors by oil refiners."

The government has recently begun preparing measures to stabilize oil prices as volatility in international oil prices has increased due to instability in the Middle East. Minister Kim said, "We started preparing related measures from February 28," and added, "We plan to pursue necessary measures, including the maximum price system, so that market conditions can quickly stabilize."

Regarding the possible introduction of a so-called 'windfall tax' on oil refiners' excess profits, he made it clear that there has not yet been any official discussion at the government level. However, he stated that if discussions take place in the National Assembly, the government would actively participate.

Minister Kim said, "So far, the government has not seriously discussed a windfall tax," but added, "If it is determined that the profits of oil refiners are at a level that runs counter to the interests of the broader community, I believe management at the community level is necessary."

With respect to the responsibility for price increases by oil refiners following the recent situation in the Middle East, Minister Kim stated, "I believe that each party—including gas stations and the government—has its own responsibility."

Minister Kim also said, "Domestic petroleum product prices are determined not by crude oil prices but by the price of petroleum products in the Singapore international market," and added, "We will continue to monitor market conditions and pursue measures to stabilize prices."

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