People Power Party (PPP) Floor Leader Song Eon-seok criticized the Lee Jae-myung administration on the 4th for lacking situational awareness and preparedness after domestic stock markets plunged following U.S. airstrikes on Iran.
"Since late last year, I have repeatedly warned that external shocks such as rising international oil prices could deal a major blow to our economy while the exchange rate remains above 1,450 won," Song wrote on Facebook.
"Despite this, the government has described the 1,400-won exchange rate as if it were a manageable 'new normal,'" he said. "With the rate now fluctuating above 1,500 won, I cannot help but ask how the government evaluates this situation. If oil price increases from Middle East conflicts are added, the burden on citizens and their livelihoods will only grow."
Song noted that capital markets are experiencing significant turbulence. "Today, the KOSPI plunged more than 8% during trading, triggering a circuit breaker, and closed down more than 12%," he said. "I believe domestic market volatility has expanded significantly as external shocks from deteriorating Middle East conditions coincide with foreign capital outflows."
He added that while the government claims oil reserves, including private stockpiles, are sufficient for approximately seven months, "if the Middle East situation drags on for more than two months or extreme scenarios such as mine deployment in the Strait of Hormuz occur, it could be fatal to our economy."
"Despite this crisis, President Lee has yet to deliver a clear message to reassure the public and markets," Song said. "Prime Minister Kim Min-seok revealed a distorted understanding of the situation by mentioning 'severe punishment for fake news' as a response to the economic shock."
"What is needed right now is a clear crisis response plan and action. Diplomatic and security measures to break through a potential Strait of Hormuz blockade must also be prepared," he said. "Given the emergency situation, we are willing to cooperate on necessary matters such as the Special Act on U.S. Investment for national security and economic stability."