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President Lee orders sustained oil price cap, fuel tax cuts amid market instability
🇰🇷 South Korea /Economy & Trade

President Lee orders sustained oil price cap, fuel tax cuts amid market instability

From Dong-A Ilbo · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korean President Lee Jae-myung ordered the continuation of the oil price cap and fuel tax cuts until oil price instability is resolved.
  • He also urged swift execution of economic growth strategies for the second half of the year, citing 3.7% GDP growth in Q2 driven by semiconductor exports.
  • The president warned against market manipulation and collusion, particularly in light of recent revelations of price-fixing by oil companies amidst Middle East tensions.

South Korean President Lee Jae-myung, currently on a state visit to Brazil, has directed his administration to maintain policies aimed at stabilizing oil prices and easing the burden on consumers and specific industries. Speaking from Brasilia, he emphasized the need to sustain the oil price cap and fuel tax reductions until global oil market volatility subsides, a situation exacerbated by renewed tensions in the Middle East.

Given the high likelihood of continued oil price volatility, we must quickly make preemptive efforts to minimize its impact on domestic prices.

— President Lee Jae-myungAddressing the need to manage the impact of fluctuating global oil prices on South Korea's domestic market.

"Given the high likelihood of continued oil price volatility, we must quickly make preemptive efforts to minimize its impact on domestic prices," President Lee stated during a virtual meeting with his senior aides. He also indicated a readiness to consider additional measures to alleviate hardship for citizens if the situation worsens, particularly for those heavily reliant on diesel, such as truck and construction equipment operators.

The president's directives come as South Korea's economy showed robust growth in the second quarter, expanding by 3.7% year-on-year, largely propelled by strong semiconductor exports. "Following the first quarter, the second-quarter growth rate was close to 4% at 3.7%," Lee noted, highlighting a significant increase in Gross Domestic Income (GDI). However, he cautioned against uneven distribution of economic gains, stressing the importance of ensuring that the benefits of growth reach all segments of society for sustainable development.

We must definitively punish acts of illegal profiteering by exploiting difficult times.

— President Lee Jae-myungWarning against market manipulation and collusion by companies taking advantage of geopolitical instability.

President Lee also addressed concerns about market manipulation, referencing a recent investigation into alleged collusion among four oil companies that profited from the Middle East conflict. He vowed strict enforcement against such practices, stating, "We must definitively punish acts of illegal profiteering by exploiting difficult times." He urged relevant authorities to remain vigilant against hoarding and price-fixing of essential consumer goods.

Following the first quarter, the second-quarter growth rate was close to 4% at 3.7%.

— President Lee Jae-myungHighlighting South Korea's strong economic performance in the second quarter.
DistantNews Editorial

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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