Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at an emergency meeting at the government complex in central Seoul on March 18, 2026. Courtesy of the Ministry of Economy and Finance
SEOUL, March 18 (AJP) - The government is coming up with a set of measures including a 1.5 trillion won (US$1.01 billion) in supplementary budget to buttress an economy hit by the escalating conflict in the Middle East, which began with U.S.‑led airstrikes on Iran late last month.
In an emergency meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol in Seoul on Wednesday, he pledged the swift implementation of the supplementary budget and other immediate measures to provide fiscal relief, stressing that "timing is key" in responding to a crisis.
With no end in sight to the conflict in the already volatile region as it enters its third week since U.S. and Israeli strikes on Iran on Feb. 28, the ministry decided to designate naphtha as a temporary "economic security item" to mitigate its supply. The move allows energy authorities to secure alternative import routes or restrict exports through active interventions, if necessary.
To help firms heavily reliant on Middle Eastern imports, a support program with a 1.5 trillion won fund will be offered, giving them a lifeline through interest rates about 2.3 percentage points lower.
Koo also warned again that the government will take a hardline stance against refiners and others seeking to profit from soaring energy prices, following the ministry's earlier measure of a price ceiling on petroleum products.
"Retail gas stations must comply with the measure without delay," Koo said, vowing to intensify on-site inspections to crack down on unfair practices such as hoarding.
The supplementary budget aims to ease the burden on vulnerable companies including small- and medium-sized enterprises (SMEs) directly hit by soaring logistics and fuel costs, with the ministry also weighing an additional supplementary budget.
It is also tapping into International Energy Agency (IEA) emergency oil reserves and exploring alternative suppliers through diplomatic channels to ensure a stable energy supply amid disruptions to maritime routes.
Meanwhile, the ministry reaffirmed its commitment to long-term industrial innovation, having already earmarked 754 billion won to develop 246 artificial intelligence (AI)-driven products over the next two years under a new project called "AX-Sprint."
The project aims to accelerate AI-driven transformation across all industries by providing tailored support for them.
"Despite February's employment data showing an increase of 234,000 jobs, many young jobseekers are still struggling in the job market," Koo said, emphasizing that the technological push aims to secure long-term labor market stability amid global volatility.
In an emergency meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol in Seoul on Wednesday, he pledged the swift implementation of the supplementary budget and other immediate measures to provide fiscal relief, stressing that "timing is key" in responding to a crisis.
With no end in sight to the conflict in the already volatile region as it enters its third week since U.S. and Israeli strikes on Iran on Feb. 28, the ministry decided to designate naphtha as a temporary "economic security item" to mitigate its supply. The move allows energy authorities to secure alternative import routes or restrict exports through active interventions, if necessary.
To help firms heavily reliant on Middle Eastern imports, a support program with a 1.5 trillion won fund will be offered, giving them a lifeline through interest rates about 2.3 percentage points lower.
Koo also warned again that the government will take a hardline stance against refiners and others seeking to profit from soaring energy prices, following the ministry's earlier measure of a price ceiling on petroleum products.
"Retail gas stations must comply with the measure without delay," Koo said, vowing to intensify on-site inspections to crack down on unfair practices such as hoarding.
The supplementary budget aims to ease the burden on vulnerable companies including small- and medium-sized enterprises (SMEs) directly hit by soaring logistics and fuel costs, with the ministry also weighing an additional supplementary budget.
It is also tapping into International Energy Agency (IEA) emergency oil reserves and exploring alternative suppliers through diplomatic channels to ensure a stable energy supply amid disruptions to maritime routes.
Meanwhile, the ministry reaffirmed its commitment to long-term industrial innovation, having already earmarked 754 billion won to develop 246 artificial intelligence (AI)-driven products over the next two years under a new project called "AX-Sprint."
The project aims to accelerate AI-driven transformation across all industries by providing tailored support for them.
"Despite February's employment data showing an increase of 234,000 jobs, many young jobseekers are still struggling in the job market," Koo said, emphasizing that the technological push aims to secure long-term labor market stability amid global volatility.
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