President Lee Jae-myung on Wednesday ordered the implementation of a maximum fuel price system and called for a comprehensive overhaul of energy policy, signaling intent to address both immediate price spikes and structural issues in the petroleum market.
The maximum price system, while legally established, has never been activated, making it effectively an emergency measure. The decision reflects the administration's strong commitment to stabilizing markets and quickly alleviating public anxiety over soaring gasoline and diesel prices.
"We must respond firmly to those who exploit crisis situations for unfair profits," Lee said at a Cabinet meeting at the Blue House. "Money may be the root of all evil, but this is too extreme."
Lee instructed officials to "review systems that can sanction behavior that accumulates wealth by exploiting community crises" and to "swiftly designate realistic maximum prices."
The president reportedly received briefings on domestic fuel price trends during his overseas trip and concluded the situation was abnormal. After returning late Tuesday from visits to Singapore and the Philippines, he immediately convened an emergency Cabinet meeting.
"Gasoline prices have suddenly skyrocketed, changing from morning to afternoon to evening," Lee said.
The president noted that Korean consumers perceive fuel prices as "rising very quickly and by large amounts, but falling slowly and by small amounts," adding that "the current Middle East situation has not yet had a substantial impact domestically."
Given that international oil price increases typically take about two weeks to reach domestic gas stations due to refining and distribution time lags, the remarks appeared to target refiners and gas station operators directly.
Domestic gasoline prices surged rapidly after U.S. and Israeli airstrikes on Iran on February 28. According to the Korea National Oil Corporation's Opinet service, the national average gasoline price rose from 1,692.58 won per liter on February 27 to 1,777.48 won on March 4—an increase of 84.9 won. Average prices in Seoul exceeded 1,800 won for both gasoline and diesel on Wednesday.
Lee characterized some gas stations already charging over 2,000 won per liter as "price gouging."
"This has been happening for a long time, and we seem to have accepted it as inevitable," Lee said. "I don't think we should."
After receiving briefings on crude oil supplies and strategic reserve release plans, Lee sought to minimize market volatility by emphasizing the scale of reserves.
"Having 208 days' worth means there would be no problem with normal energy use even if imports were completely restricted," he said. "People think that disruptions to imports would immediately affect daily use, but that's not true. Even if imports were completely cut off, we would have no problems for seven months."
Lee also called for a fundamental shift in energy thinking.
"International oil prices and crude supply issues will continue to recur," he said. "As the saying goes, 'rest while you're down'—this could be a good opportunity for transitioning to renewable energy."
Citing the principle of "local production, local consumption," Lee identified "concentration in the metropolitan area as the fundamental problem" and called for "rapidly relocating industries to regions with abundant energy."
On financial market volatility, Lee expressed confidence in recovery prospects.
"We must turn crisis into opportunity," he said. "Markets have only been rising, and this is an opportunity to build a solid foundation."
Lee praised financial authorities for swiftly activating a market stabilization program worth "100 trillion won plus alpha."
"Psychology plays a major role in finance," he said. "You must overcome fear and greed to see resolution. With calm, objective assessment, even with fluctuations, things will ultimately converge to their true value."
Lee also announced a hardline stance against stock market manipulation alongside the fuel price issue.
"Please block fake news and market manipulation crimes," he said. "We must hold accountable with zero tolerance those forces that seek profit by creating chaos in the national economy."
On social media, Lee wrote: "The people's sovereignty government does not make empty promises. This government's primary goal is to make it impossible to profit by going against legitimate government policies."