President Lee Orders Review of Easing 'Gas Station Use Restriction' on High Oil Price Relief Funds

Designed to Prohibit Use at Businesses with Sales Over 3 Billion Won

Need for Easing Restrictions Raised During Internal Discussions

Lee Kyuyoun: "Shouldn't People at Least Be Able to Buy Fuel?"

"May Oil Imports Reach 87% of Last Year

President Lee Jae-myung has instructed officials to consider easing restrictions on the use of high oil price relief funds at gas stations, amid controversy over limitations on where the funds can be used.

Lee Gyuyon, Senior Presidential Secretary for Public Communication at the Blue House, appeared on KBS 1 Radio's "All the Information in the World with Yun Ingoo" on the 29th and addressed the controversy over the usage of high oil price relief funds. He stated, "Yesterday, or perhaps the day before, the President told senior aides to listen to both sides of the argument. Since people naturally associate the high oil price relief funds with the purchase of fuel, the prevailing public sentiment is that they should be able to use the funds to buy fuel. The President has therefore instructed us to consider easing the restrictions."

President Lee Jae-myung listens to remarks from attendees at the Cabinet meeting and emergency economic inspection meeting held at the Blue House on the 28th. Photo by Yonhap News

The high oil price relief funds are designed so that they cannot be used at businesses with annual sales of 3 billion won or more. As a result, many gas stations in Seoul, Gyeonggi Province, and other metropolitan areas have been excluded, leading to public complaints. Secretary Lee explained, "The relief fund is intended to compensate for overall damage caused by high oil prices, so it is not meant to be used solely for refueling. However, it is understandable that people would perceive it that way."

He continued, "Fiscal authorities believed that if the funds were used to refuel at a single location, the effect on the broader market would be limited. The program was designed to support small business owners and those in need. In line with this intention, restricting their use at gas stations with annual sales of 3 billion won or more makes sense. However, because these are high oil price relief funds, people are asking, 'Why can't we use them to buy fuel?'"

Secretary Lee also commented on President Lee's decision-making style, saying, "He always asks his aides for their opinions, engages in Q&A, and then makes a decision. He is not someone who only voices his own thoughts; he consistently asks questions and seeks solutions through dialogue."

"May Crude Oil Imports Secure 87% of Last Year's Volume...No Immediate Cause for Major Concern"

Regarding potential energy supply issues stemming from instability in the Middle East, Secretary Lee noted that the volume of crude oil imports for May has reached about 87% of last year's figure. He said, "In a situation where we do not produce even a drop of oil domestically, if our secured volume drops too low, there are limits to what energy-saving measures can achieve. Chief Presidential Secretary Kang Hoon-sik, as well as various ministries and large companies, are working together at both public and private levels." He added, "An 87% figure is not particularly low, and we also have existing reserves, so I do not believe there is any immediate cause for major concern."

However, he said that the government is working to diversify both crude oil supply sources and shipping routes in preparation for potential long-term disruptions. Secretary Lee explained, "Compared to May of last year, our dependence on Middle Eastern oil has dropped from 69% to 56%, a decrease of about 13%. We are continuously exploring options in the United States and Africa as well."

He continued, "Efforts are also being made to secure alternative routes that do not pass through the Strait of Hormuz. Diversification of sources and routes is a precaution against the possibility of a prolonged conflict." He added, "Now that the risks associated with relying on a single source have become apparent, we intend to continue diversifying supply sources and securing alternative routes."

Secretary Lee also highlighted the expansion of renewable energy as a mid- to long-term direction for energy policy. He said, "The President cited the proverb 'Take a break when you fall down' and emphasized that relying solely on fossil fuels is a significant problem. He wants to accelerate the adoption of new and renewable energy sources."

He further stated, "Refining facilities tailored to Middle Eastern crude will need to be upgraded to process American or other types of oil. In order to diversify supply sources, we must also prepare our refining infrastructure."

"Special Long-Term Capital Gains Tax Deduction Benefits Largely Go to Owners of High-Priced Homes"

Addressing the controversy over the special long-term capital gains tax deduction for real estate, Secretary Lee pointed out, "The benefits are mostly going to those who own high-priced homes," indicating the need for reform. He said, "Details will be released by the economic ministries, but for example, even if the capital gain is 1 billion won, if a property is sold after rising from 500 million to 1.5 billion won, the deduction is about 20 million won. But if the sale is from 3 billion to 4 billion won, the benefit increases to about 160 million won."

He continued, "Currently, the structure is such that the deduction benefits are mainly enjoyed by owners of high-priced single homes. This is a problem that needs to be addressed." However, he added, "The President has not specified how the deduction brackets should be structured. He only pointed out the issue, and it will be up to the economic ministries and policy chiefs to design appropriate measures."

Secretary Lee said, "At every meeting, he tells the policy office and the economic ministries that they need to craft detailed policies and make sure no one feels unfairly treated. He is also emphasizing that this time, the real estate market must truly be brought under control."

"First Overseas Google AI Campus to Be Built in Korea"

Regarding President Lee's meeting with Demis Hassabis, co-founder and CEO of Google DeepMind, on the 27th, Secretary Lee said, "The most significant outcome is that the first overseas Google AI campus will be established in Korea." He explained, "Google does not usually set up such campuses in other countries. This will provide a foundation for training talent and conducting joint research in Korea."

On the topic of the presidential office in Sejong, Secretary Lee said, "It will likely be completed by around 2029." However, he clarified, "This does not mean that the Blue House is moving to Sejong. For now, only the Sejong office is being built, and the completion of the administrative capital will depend on public consent and any necessary legal or constitutional revisions."

Meanwhile, Secretary Lee commented on President Lee's use of social networking services (SNS), saying, "I believe the world has changed. One common trait among presidents of democratic countries with high approval ratings is that they are adept at using SNS."

He added, "From a traditional perspective, it may seem odd for a president to use SNS, but in reality, it is a global and contemporary trend. The President's skillful SNS engagement is far more helpful than burdensome."

When asked whether President Lee personally writes his SNS posts, Secretary Lee replied, "Almost all of them. While some ceremonial messages may be prepared in advance, in most cases, the President writes them himself."

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