Prime Minister Kim Min-seok said the government will "flexibly review energy conservation measures in which all citizens can participate" in response to the energy and economic crisis triggered by the war in the Middle East.
Kim made the remarks while attending a plenary session of the National Assembly's Special Committee on Budget and Accounts for deliberation on the supplementary budget. "The conditions surrounding our economy represent a graver crisis than at any other time," he said.
"Warnings are mounting that a shock comparable to the 1970s oil crisis could recur," Kim said. "As the Middle East war has continued for more than a month, volatility in energy, logistics and financial markets has widened, and global supply chain instability has also deepened."
He added that the Organisation for Economic Co-operation and Development (OECD) recently lowered its growth forecast for Korea this year from 2.1% to 1.7% and raised its inflation projection to 2.7%.
"We prepared a supplementary budget of 26.2 trillion won ($19.3 billion) to overcome the current crisis," Kim said. "The supplementary budget is an unavoidable and urgent measure to protect our companies and industries and safeguard the daily lives of the people."
"We will mobilize every available policy tool to stabilize energy supply and demand and ease the burden on the public," Kim said. "The public sector will take the lead in implementing intensive consumption reduction measures, and we will also flexibly review energy conservation measures in which all citizens can participate."