South Korean President Calls for Stronger Oil Price Controls Amid Mideast Tensions

President Lee Jae-myung has called for a reinforcement of the oil price cap system, citing a perceived worsening of the situation in the Middle East. Speaking at a Cabinet meeting on June 21, Lee stated that the current geopolitical climate necessitates increased vigilance.

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The Middle East situation is worsening again, so we need to raise our guard.

"The Middle East situation is worsening again, so we need to raise our guard," Lee remarked. He added, "This time, there is no prospect of an early end or ceasefire, so we must carefully monitor the impact on domestic prices."

Lee suggested that the price cap, which was introduced on March 13 to mitigate the burden on consumers from soaring international oil prices, should be strengthened rather than lowered or abolished as might be expected. The government had previously reduced the cap to 150 won per liter on May 27.

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This time, there is no prospect of an early end or ceasefire, so we must carefully monitor the impact on domestic prices.

Deputy Prime Minister and Minister of Economy and Finance, Gu Yoon-cheol, acknowledged the president's concerns, stating, "We will look into the oil price situation."

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We will look into the oil price situation.

Furthermore, President Lee emphasized the need for meticulous management of inflation, urging officials to "do their best to prevent any elements of corruption from interfering" in measures like tariff quotas or low-cost imports. He also warned against the potential resurgence of hoarding if oil prices rise further or the situation deteriorates, reminding attendees that under current law, hoarded goods are subject to confiscation and that vigilance and crackdowns are necessary.

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Do your best to prevent any elements of corruption from interfering in measures like tariff quotas or low-cost imports.