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🇰🇷 South Korea /Economy & Trade

South Korean minister outlines conditions for ending oil price cap, discusses US investments

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korea's Trade Minister discussed conditions for ending the oil price cap system, including the normalization of the Strait of Hormuz and oil prices stabilizing around $90 per barrel.
  • Regarding major investment projects in the US, the minister described negotiations as constructive but emphasized the need for commercial viability assessments before any announcement.
  • The minister also highlighted South Korea's competitive advantages in the bid for a Canadian submarine contract and outlined plans for integrated industrial policies.

South Korea's Minister of Trade, Industry and Energy, Kim Jong-ho, has outlined the conditions under which the country might consider ending its oil price cap system. Speaking at a press conference following his return from the United States, Kim stated that the cessation of the conflict in the Strait of Hormuz, its subsequent normalization, and a stable oil price environment around $90 per barrel would be key factors.

If the war ends, Hormuz is normalized, and oil prices stabilize around $90 per barrel, we might be able to consider ending the price cap.

— Kim Jong-hoDiscussing the conditions for lifting South Korea's oil price cap.

The oil price cap system, implemented in March, aims to stabilize fuel prices amidst volatility caused by geopolitical tensions. The minister indicated that these conditions would pave the way for reviewing the current price ceiling.

On the subject of significant investment projects in the U.S., Kim described the ongoing negotiations as progressing constructively. However, he stressed a cautious approach regarding the timing of any announcements. "The announcement timing depends on the completion of commercial viability assessments," he stated, declining to comment on specific projects currently lacking concrete details.

Negotiations are proceeding in a constructive direction.

— Kim Jong-hoDescribing the progress of talks on major investment projects in the US.

Kim also addressed South Korea's bid for a Canadian submarine contract, emphasizing the country's strengths. He pointed to the existing Jang Bogo-class submarine as a tangible asset, contrasting it with competitors who are still in the design phase. South Korea's competitive pricing, specifications, and integrated industrial cooperation packages, including offerings from Hyundai Motor and Hanwha, were highlighted as significant advantages.

The announcement timing depends on the completion of commercial viability assessments.

— Kim Jong-hoRegarding the timeline for announcing US investment projects.

However, Kim acknowledged that Canada's membership in NATO could influence its decision, potentially favoring European partners. He also introduced the concept of 'Industrial Strategy,' integrating industrial, trade, resource, and regional policies under a unified framework to enhance national industrial competitiveness. Key focuses for the latter half of the year include regional development strategies and the M.AX initiative, aimed at driving AI transformation in manufacturing.

We have a tangible submarine, the Jang Bogo, while Germany is still designing.

— Kim Jong-hoHighlighting South Korea's advantage in the Canadian submarine bid.
DistantNews Editorial

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

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