Seoul: Finance Minister Koo Yun-cheol said Sunday that heightened military tensions surrounding Iran are expected to increase volatility in global financial and energy markets, vowing round-the-clock monitoring through a governmentwide emergency response team, the finance ministry said. Koo made the remarks while presiding over an emergency meeting in Seoul, following a joint U.S.-Israeli strike on Iran a day earlier that reportedly killed Iran's Supreme Leader Ayatollah Ali Khamenei amid stalled negotiations over Tehran's nuclear program.
According to Yonhap News Agency, Koo emphasized the critical reliance on the Middle East for energy and the necessity for a swift response due to potential instability in the Strait of Hormuz affecting global energy prices. He stressed the importance of remaining on heightened alert and responding with vigilance due to the high level of uncertainty.
South Korea has assured that it currently possesses sufficient strategic oil reserves and response capacity to handle potential supply disruptions. Koo indicated that the government is prepared to release oil reserves into the domestic market if necessary.
The government has established a pan-government joint emergency response team led by Koo, including officials from the finance, industry, land and oceans ministries, as well as the Bank of Korea (BOK) and other relevant institutions. This team is tasked with monitoring developments in the Middle East and their impact on domestic and global financial markets and the broader economy on a continuous basis.
Authorities have committed to swiftly implementing countermeasures in line with contingency plans in close coordination with relevant agencies should any unusual signs emerge. The finance ministry highlighted the readiness to act swiftly.
In a separate meeting, Lee Eog-weon, chairman of the Financial Services Commission (FSC), instructed officials to promptly implement market stabilization measures, including a program worth more than 100 trillion won (US$69.11 billion) and additional support if required, according to his office.
Meanwhile, the domestic stock and financial markets will remain closed Monday for a substitute holiday.