The Democratic Party of Korea argued that domestic stock market fluctuations following the U.S. strike on Iran have been excessive, calling for a measured response. The party noted that market declines have been larger than expected given the KOSPI's recent upward trend, driven by enhanced transparency from commercial law amendments and solid semiconductor earnings.
The Democratic Party held a briefing on "Middle East Situation and U.S. Tariff Negotiations" on Sunday with government officials and business leaders, including oil refiners, to address rising exchange rates and plunging stock markets amid the Middle East crisis.
At the meeting, Rep. Oh Ki-hyung pointed out that Korea's volatility in oil prices, exchange rates, and stock markets has been greater than neighboring countries. "I believe our country's reaction has been excessive compared to surrounding nations," Oh said. "I think this is because psychological factors are strong in our economy. That's why the government and political circles need to respond more calmly and stably to this situation."
Oh warned that excessive responses from the government and politicians could fuel anxiety among market participants. "The underlying trends in Korea's stock market are corporate governance transparency and semiconductor earnings, and these major trends remain intact," he added. "If we respond calmly and communicate with the public, we can create hope for our economy's future."
Meanwhile, calls emerged for urgent measures to secure liquefied natural gas supplies. Rep. Ahn Do-geol, a former government official, noted that 70% of crude oil and 20% of LNG imports pass through the Strait of Hormuz. "While crude oil reserves stand at about 270 days, LNG reserves cover only 9 days, which is a major problem," Ahn said, urging collective efforts to develop energy supply measures focused on LNG.
