Chairing an emergency cabinet meeting, Lee warned that the trajectory of the crisis remains highly uncertain.
“It is difficult to predict how the situation will unfold,” Lee said. “The government must be ready for the worst-case scenario with an extraordinary sense of urgency.”
Senior officials from key ministries — including finance, foreign affairs, trade and industry, environment and agriculture — attended the meeting alongside heads of economic agencies such as the Fair Trade Commission and the National Tax Service.
Lee instructed authorities to prepare additional market-stabilization measures beyond the existing 100 trillion won ($75 billion) financial safety program, saying the government and the Bank of Korea should be ready to expand interventionist actions if needed.
The emergency meeting came after the surge in global oil prices rattled financial markets earlier Monday. The benchmark KOSPI plunged nearly 8 percent, while the Korean won weakened toward levels last seen during the aftermath of the global financial crisis.
Government bond yields also jumped about 25 basis points, climbing to their highest levels since September 2022.
Lee also warned against profiteering as energy prices rise.
“We must strictly crack down on those seeking unfair profits from market turmoil,” he said, adding that the crisis should also serve as a catalyst to “push forward structural reforms to strengthen the resilience of Korea’s capital markets.”
With domestic fuel prices approaching 1,900 won per liter, Lee ordered officials to prepare the swift implementation of a price ceiling system for gasoline and diesel. Under the proposed mechanism, the government would cap retail prices and compensate fuel distributors for losses incurred from the policy.
He also instructed ministries to work with strategic partner countries to secure alternative supply routes that bypass the Strait of Hormuz, a critical oil chokepoint now facing disruption amid the conflict.
Emphasizing the social impact of rising energy costs, Lee vowed to crack down on price collusion, hoarding and speculation by refiners and gas stations.
“Violators should face penalties several times greater than the profits they earn from such illegal acts,” he said.
“Crisis always carries opportunity,” Lee added. “Everyone is suffering from the same global shock, but how we prepare and respond will determine what comes next.”
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