Gu Yun-cheol: Ceasefire is opportunity to secure Middle East reconstruction, address supply chain risks

The South Korean government is set to fully implement a "Post-Middle East Foreign Economic Policy" in response to a potential US-Iran ceasefire agreement, viewing it as both a challenge and an opportunity. Deputy Prime Minister and Minister of Economy and Finance Gu Yun-cheol announced the initiative, emphasizing the need to proactively engage with the region's evolving economic landscape.

"The recent agreement between the US and Iran on a memorandum of understanding for a ceasefire presents us with new challenges and opportunities simultaneously," Gu stated at a meeting of economic ministers. "We will, on a pan-governmental level, accelerate our post-Middle East foreign economic policy."

“

The recent agreement between the US and Iran on a memorandum of understanding for a ceasefire presents us with new challenges and opportunities simultaneously.

The policy's core objectives are to secure opportunities in the reconstruction and economic restructuring demands of Middle Eastern countries and to counter supply chain risks that have been amplified by recent tensions. Specific measures include launching a "Middle East Infrastructure Cooperation Task Force" to identify and secure key projects, and strengthening inter-governmental (G2G) cooperation through high-level local deployments. Additionally, South Korea plans to pilot an early warning system (EWS) for supply chains in the latter half of the year and reform its economic security items.

“

We will, on a pan-governmental level, accelerate our post-Middle East foreign economic policy.

Gu also highlighted plans to actively pursue free trade agreements (FTAs) with countries like Mongolia, China, and Morocco. The goal is to build a mutually beneficial economic cooperation platform that connects Mongolia's resources with South Korea's technology and industrial capabilities. Cooperation with China will focus on areas like K-content, pursuing reciprocal market openings.

During the meeting, discussions also covered the monitoring of the Middle East situation and employment conditions. Gu assured that the government would provide support for South Korean vessels to navigate the Strait of Hormuz safely and efficiently. Furthermore, plans are underway to develop and announce sector-specific response measures, including a "Youth Job Recovery Plan," based on detailed analysis of struggling industries and vulnerable groups like young people.

“

The goal is to build a mutually beneficial economic cooperation platform that connects Mongolia's resources with South Korea's technology and industrial capabilities.