Lee Hyeong-il, acting Minister of Economy and Finance, said on the 22nd regarding the U.S. airstrikes in Iran, "We are closely monitoring the impact on financial markets and the real economy, and if any unusual developments occur, implement necessary measures promptly."
He noted during a conference call with relevant agencies on the situation in the Middle East at 3:30 p.m. that "The Middle East situation has entered a new phase due to the U.S. airstrikes on Iran's nuclear facilities."
He stated, "Given Iran's potential responses, the uncertainty remains very high," adding, "Each institution must exercise extraordinary vigilance and cooperate closely."
The meeting included the Ministry of Economy and Finance, as well as the Ministry of Foreign Affairs, Ministry of Trade, Industry and Energy, Ministry of Oceans and Fisheries, Financial Services Commission (FSC), Bank of Korea, Financial Supervisory Service (FSS), and the International Financial Center.
They diagnosed that international oil prices have risen and the volatility in domestic and foreign financial markets has somewhat increased since the Israeli airstrikes on Iran on the 13th.
However, domestic energy stockpiling and supply have not been disrupted, and in shipping and logistics, vessels (31) near the Middle East are continuing safe operations, with no unusual occurrences reported.
The government plans to check the local situation in the Middle East and monitor the developments in the financial, energy, export-import, and shipping sectors around the clock, and respond swiftly according to the contingency plan if necessary.
In particular, the government has decided to take immediate and bold measures if the financial market shows excessive volatility, contrary to the fundamentals of our economy. It also intends to ensure thorough management of energy supply and demand.
A government official explained, "To minimize the impact on exports and logistics, we will implement support measures without delay, such as liquidity support for companies suffering export damage in the Middle East and dedicated shipping capacity for small and medium enterprises," adding, "We also plan to consider additional support measures such as deploying temporary vessels if concerns about logistical bottlenecks increase."
Meanwhile, the Ministry of Trade, Industry and Energy activated an emergency response team on the same day under the leadership of 2nd Vice Minister Choi Nam-ho at the Korea Trade-Investment Promotion Agency (KOTRA). They urgently reviewed energy, exports, logistics, supply chains, and companies operating in the region through a video connection with trade offices in the U.S. and Israel.
According to the Ministry of Trade, from January to May, exports to the Middle East accounted for 3% of Korea's total exports. The ministry reports that the impact of the ongoing situation in the Middle East on our exports is limited. Some materials, parts, and equipment that depend heavily on countries like Israel can be alternatively sourced or have sufficient inventory.
A Ministry official stated, "As of now, there is no direct disruption in energy supply and demand," adding, "The impact on oil prices, exports, logistics, and companies operating abroad is limited, but the U.S.'s involvement in the Iran-Israel conflict may impact developments in the Middle East, so we will continue to monitor closely."