Seoul: President Lee Jae Myung ordered the government Thursday to swiftly execute a 100 trillion-won (US$68.3 billion) financial package to stabilize the capital markets amid the widening war in the Middle East. Lee gave the instruction during an extraordinary Cabinet meeting convened to discuss the situation following last weekend's U.S.-Israeli strikes on Iran, saying the escalating crisis has led to a serious deterioration of the global economic and security environment.
According to Yonhap News Agency, Lee emphasized the need to actively respond to increased financial market volatility, particularly in stocks and exchange rates. During the meeting at Cheong Wa Dae, which occurred a day after his return from state visits to Singapore and the Philippines, he stressed the importance of swiftly executing the 100 trillion-won market stabilization program to prevent anxiety in capital markets. However, he cautioned against artificially propping up the stock market by purchasing shares.
In light of recent gas price fluctuations, Lee noted that the sharp increases did not seem to stem from a serious supply disruption. He instructed the government to devise a regional and oil-type specific price cap system if a uniform nationwide cap proves difficult to implement. Additionally, he called for the swift creation of a system to punish price gouging.
Lee also proposed a major shift towards renewable energy sources to reduce reliance on fossil fuels, which are susceptible to large price fluctuations. He called for strict accountability for those exploiting market instability, particularly individuals spreading disinformation or suggesting that North Korea might be the next conflict zone.
Furthermore, Lee instructed the government to develop emergency evacuation plans for South Koreans in the Middle East, emphasizing the use of military and chartered aircraft if necessary. He urged efforts to ensure the safety of South Korean vessels and crew members in the region's waters, advocating for frequent safety checks and collaboration with friendly nations for a swift and safe evacuation plan.