The Korean government launched emergency measures as escalating geopolitical tensions in the Middle East sent oil prices surging more than 10% intraday, amplifying volatility across global financial and energy markets. Authorities said they would immediately deploy a market stabilization program worth "100 trillion won plus alpha" if abnormal conditions emerge.
First Vice Minister of Economy and Finance Lee Hyung-il held an emergency joint response meeting on the 3rd with officials from the Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Financial Services Commission, Bank of Korea, and Financial Supervisory Service. The group assessed the potential impact of the Middle East situation on domestic financial markets and the real economy.
International oil prices showed extreme volatility, opening sharply higher before surrendering some gains. West Texas Intermediate crude surged more than 10% intraday to $75 per barrel, while Brent crude threatened the $80 level. Safe-haven demand pushed the dollar index higher and sent European equities lower. Asian markets were mixed.
In response, the government committed to round-the-clock monitoring of domestic and international energy and financial markets. When necessary, authorities will coordinate to deploy the 100 trillion won-plus stabilization program for rapid response. A "one-strike-out" policy will be enforced against fake news and unfair trading practices.
Officials also reviewed energy supply and maritime logistics conditions. No unusual developments affecting Korean vessels in Middle Eastern waters have been identified. The government assessed that sufficient strategic petroleum reserves ensure no short-term supply concerns. However, as a precaution against worst-case scenarios such as a Strait of Hormuz blockade, authorities will also secure crude oil supplies from regions outside the Middle East.
Support measures for small and medium-sized enterprises will proceed in parallel. The Export-Import Bank of Korea's Crisis Response Special Program will offer preferential interest rates of up to 2.2 percentage points. Financial support programs totaling 20.3 trillion won will be activated through the Export-Import Bank, Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund.
"Given the high uncertainty surrounding the Middle East situation, we must keep all possibilities open and monitor closely," Vice Minister Lee said. "We will hold daily joint emergency response meetings until the situation stabilizes."