South Korea considers additional budget to address impact of Middle East situation

Golden Ten Data, March 11 – South Korean Finance Minister Choo Kyung-ho stated at an emergency economic meeting on Wednesday that South Korea will implement all available policy measures as needed, including a possible supplementary budget, to mitigate the economic impact of escalating tensions in the Middle East. Choo Kyung-ho said the government will consider extending the fuel tax cut while monitoring international oil prices, and will respond swiftly if signs of economic instability appear. Authorities are also prepared to expand the existing market stabilization plan, which is valued at over 100 trillion won (approximately $68 billion), if necessary. The government and the Bank of Korea will coordinate additional measures, such as emergency repos and direct purchases of government bonds, to stabilize financial markets. In addition, the South Korean government stated it is closely monitoring the energy market and supply chain. Choo Kyung-ho pointed out that, according to International Energy Agency standards, South Korea's strategic petroleum reserves are equivalent to about 208 days of consumption.