Koo Yooncheol: "'Naphtha' Temporarily Designated as Economic Security Item... 1.5 Trillion Won Financial Support for Companies Affected by Supply Chain Disruptions"

Emergency Economic Ministers' Meeting and Supply Chain Stabilization Committee

The government announced that it will temporarily designate naphtha, which has seen a recent increase in supply chain risks due to the Middle East crisis, as an economic security item and expand financial support for companies affected by supply chain disruptions to a total of 1.5 trillion won.

On March 18, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol stated at the Emergency Economic Ministers' Meeting and Supply Chain Stabilization Committee held at the Government Complex Seoul, "With the Middle East situation continuing for more than two weeks, supply chain shocks are persisting not only in petroleum products but also in raw materials, and the resulting burdens are gradually accumulating across various sectors of the economy."

Deputy Prime Minister Koo added, "In addition to the petroleum price cap already implemented, we will immediately utilize all available policy measures, such as designating economic security items, and quickly prepare a supplementary budget to ease the burdens on both people's livelihoods and industry."

He further explained, "As a priority, we will closely monitor naphtha supply and demand trends and the difficulties faced by companies, while actively implementing measures such as securing alternative import sources and imposing export restrictions."

A 'Special Support Program for Middle East Damage Response' will be newly established within the Supply Chain Stabilization Fund, expanding financial support for companies affected by supply chain disruptions to a total of 1.5 trillion won. Deputy Prime Minister Koo stated, "We will provide support for the difference in alternative import costs and emergency operating funds to affected companies, and for companies dealing in economic security items with high dependence on the Middle East, we will offer preferential interest rates of up to 2.3 percentage points."

Regarding the supplementary budget for responding to high oil prices, he emphasized, "We will swiftly prepare a war-time supplementary budget to actively relieve the burden of logistics and fuel costs, stabilize livelihoods for small business owners and those in the agricultural and fisheries sectors, and support small and medium-sized enterprises affected by these events."

With respect to how the supplementary budget will be used, he added, "To alleviate polarization, we will closely target support for vulnerable groups, regions, and other sectors facing difficulties."

Finally, for energy supply management, he stated, "We will mobilize all diplomatic capabilities and human resources to actively identify additional stable alternative supply sources, strengthen efforts to reduce demand by limiting refinery export volumes, flexibly operating coal-fired power plant caps, improving nuclear power plant utilization rates, and expanding renewable energy. If necessary, we will also consider various additional demand management measures, such as alternate day vehicle operation."

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