President Lee Jae-myung said on the 31st that "in an urgent situation, the emergency fiscal decree prescribed by the Constitution could be utilized" in response to the Middle East crisis.
At a Cabinet meeting held at Cheongwadae (the presidential office) on the same day, Lee emphasized, "If necessary, we will legislate, and we must strive to deploy our authority and capabilities to their maximum. There is no need to be bound by existing conventions."
Lee said, "The fallout from the Middle East war has triggered an emergency alarm for the global economy," adding, "The Organisation for Economic Co-operation and Development (OECD) has uniformly downgraded growth forecasts for major countries this year, warning that oil prices could surge to $135 per barrel in the second quarter."
The president raised his voice, calling for a "preemptive and bold response" to overcome the difficult conditions caused by the Middle East war. "Given our high dependence on external trade and the large share of energy supply sourced from the Middle East, even more thorough inspections and meticulous emergency measures are required," he said. "Each government ministry must monitor trends in the commodities under its charge on a daily basis and take preemptive and bold action against supply instability concerns."
Lee mentioned the emergency fiscal decree, noting, "When we face a certain situation and deliberate on countermeasures, we generally tend to rely on existing conventions or customary procedures." Article 76 of the Constitution stipulates that the president may take minimum necessary fiscal and economic measures or issue orders with the force of law in the event of a grave fiscal or economic crisis. The remark is interpreted as signaling that fiscal and economic measures without National Assembly legislation should also be considered if the economic shock stemming from the Middle East situation intensifies.
"A more proactive and aggressive response is needed," Lee said. "Emergency supply-and-demand adjustment measures for naphtha have been in effect since last week. Critical raw materials such as urea, diesel exhaust fluid (urea solution), helium and aluminum must also be managed as strictly as wartime supplies."