Gyeongnam Launches Emergency Measures for Livelihood Stability Amid Middle East Crisis ... "Mobilizing All Available Resources"

Early Execution of 6.011 Trillion Won Welfare Budget
300 Billion Won Tax-Free Fuel Discount Support

280 Billion Won SME Development Fund Support
Inspection of Unfair Sales Practices at Gas Stations

Gyeongsangnam-do Province is launching a comprehensive response across all sectors to prepare for the economic impact in the region, including rising oil prices, due to the deteriorating situation in the Middle East.

On the morning of March 10, Gyeongsangnam-do held an emergency economic countermeasure meeting related to the Middle East crisis, where they discussed response directions and measures for price stability by sector, deciding to enter a special period for stabilizing people’s livelihoods until the situation is resolved.

Governor Park Wansu declared at the provincial government press center on March 10, "We will make stabilizing people’s livelihoods our top priority and mobilize all available resources for an emergency response."

Governor Park emphasized, "Due to the Iran crisis, the situation in the Middle East has rapidly worsened, amplifying uncertainty. With the Strait of Hormuz blocked, the international price of Dubai crude oil has surpassed $100 per barrel, and gasoline and diesel prices in the province have surged by more than 10 to 20 percent in a short period."

He further stressed, "The rise in energy prices leads to higher overall prices, impacting every sector of the provincial economy—including manufacturing, logistics, agriculture and fisheries, and small and medium-sized businesses—which makes an early response crucial."

Governor Park Wansu of Gyeongnam Province is announcing emergency measures for stabilizing public livelihoods amid the deteriorating Middle East situation caused by the Iran crisis. Photo by Lee Seryung

The province will first expedite the execution of the 6.0112 trillion won welfare budget originally allocated in this year’s budget.

This is to ensure that welfare support for low-income and vulnerable groups—covering heating, living, and medical expenses—is not delayed by even a single day.

If the current situation persists and additional support is deemed necessary, an additional 10 billion won in reserve funds will be deployed.

For small business owners in land transportation, 5 billion won in emergency business stabilization funds will be provided within this month.

In addition, the province will facilitate expanded lending and maturity extensions through the Gyeongnam Credit Guarantee Foundation to ease funding constraints.

Emergency Response Plan for Public Stability in Gyeongnam Province Amid Worsening Middle East Situation. Photo by Se-ryeong Lee

According to the province, due to the blockade of the Strait of Hormuz, products from 28 local companies loaded on ships cannot be brought in, aggravating difficulties for Middle East export companies because of rising logistics costs and severed ties with buyers.

To address this, the province will allocate 300 million won in emergency supplementary budget funds for logistics cost support for Middle East export companies, and immediately provide 280 billion won from the SME development fund.

Additionally, the province will expand financial support in cooperation with the Bank of Korea’s Gyeongnam branch and the Korea SMEs and Startups Agency, offering tailored assistance based on each company’s situation.

For farmers preparing for the spring farming season and for greenhouse and floriculture farms, the province will provide a 30 billion won emergency subsidy for discounted tax-free fuel—kerosene, diesel, and gasoline—in partnership with the National Agricultural Cooperative Federation.

Reserve funds will also be used to assist farmers and fishermen who have suffered damages in their recovery efforts.

An emergency economic countermeasure meeting regarding the Iran situation is being held in the main conference room of the Gyeongnam Provincial Government Office. Provided by Gyeongnam Province

The province will also focus on maintaining market order by monitoring gas station prices and fair business practices.

Under the governor’s special directive, the province will inspect all 1,008 gas stations across 18 municipalities for compliance with the price display system, proper and accurate sales, and will strictly enforce the law if any price-fixing, hoarding, or illegal distribution activities are detected.

Additionally, field inspections of agricultural, livestock, and seafood service charges will be strengthened by the Price Countermeasure Comprehensive Situation Room.

Alongside these measures, the province plans to propose to the central government and the National Assembly to expedite and expand the energy support budget for vulnerable groups, strengthen national reserves of fertilizer and feed ingredients, and expand policy finance for small businesses and SMEs.

The province also intends to request measures for oil price stabilization and oil supply, compensation for major industries’ losses due to the announcement of maximum price regulations, and a reduction in the consumer fuel tax.

Governor Park stated, "Even now, consumers are lining up hundreds of meters outside gas stations, and if the Middle East situation is prolonged, the impact on the regional economy will be significant. We will work closely with the central government to discuss solutions for oil supply and pricing issues, and strive at the local government level to eradicate unfair practices such as price collusion."

Governor Park added, "Gyeongnam Province remained steadfast even during the IMF foreign exchange crisis, the financial crisis, and the unprecedented COVID-19 pandemic. We have proven our strength by reclaiming third place nationwide in regional GDP after nine years by turning crises into opportunities."

He continued, "I believe we can also overcome the current difficulties through the united efforts of our residents. All Gyeongnam public officials will work on the ground to immediately reflect voices from the field in policy, turning this crisis into an opportunity."

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