Government Launches Multi-Faceted Economic Response Strategy to Address High Oil Prices

The government recently emphasized that various departments should more thoroughly implement specific plans to address the economic burden caused by high oil prices. Vice Premier and Minister of Finance and Economy Choi Kyung-hwan stated that, given the ongoing tensions in the Middle East, measures are being taken to develop comprehensive countermeasures to minimize their impact on the overall economy.

On the 22nd, Vice Premier Choi Kyung-hwan met with several ministers at the Seoul government office to discuss responses to high oil prices. He not only called for the swift execution of additional budgets but also instructed to actively explore and utilize policy options in finance, taxation, and regulation that do not require budgets. This move is interpreted as an effort to minimize the impact of rising international oil prices on domestic prices.

He also directed that thorough on-site inspections are necessary for the effective implementation of the maximum price cap on petroleum products. Additionally, he requested relevant departments to adopt various measures to stabilize prices, such as freezing public expenses, expanding discounts on 23 specially managed commodities, and improving distribution structures, with the goal of prioritizing people’s livelihoods.

He particularly emphasized that, given the public’s significant concern over energy supply and demand issues due to high dependency on the Middle East, it is necessary to quickly develop and announce plans to expand the use of alternative energy sources and energy-saving measures. This aims to enhance transparency in energy supply and demand management and to alleviate public anxiety.

Vice Premier Choi added that while rapid policy formulation is important, efficient on-site execution is even more critical. He called for strengthening a one-stop support system across departments and shortening support cycles through fast-track channels to research and improve plans. This indicates that actively responding to economic uncertainties is a top priority for the government.