Deputy Prime Minister Koo Yun-cheol: "We must respond swiftly to volatility in global energy prices"

Deputy Prime Minister for Economic Affairs Koo Yun-cheol, who also serves as Minister of Finance and Economy, said on the 1st in relation to U.S. and Israeli airstrikes on Iran that "there is a need to respond swiftly to volatility in global energy prices stemming from the possibility of instability in the Strait of Hormuz."

Chairing an 'Interagency Joint Emergency Situation Check Meeting on Developments in the Middle East' at the Government Complex Seoul that day, Koo added, "We must closely monitor the operating status of our vessels, including oil tankers and LNG carriers, and do our utmost to ensure there are no disruptions to energy supply and demand," he said.

Participants at the meeting agreed, saying, "Volatility in international financial and energy markets will increase," and adding, "Given the high uncertainty over how the situation in the Middle East will unfold, relevant agencies should be instructed to respond with heightened vigilance."

The government will activate an interagency joint emergency response task force, led by the deputy prime minister for economic affairs, to address developments in the Middle East, covering the real economy, energy, financial markets and regional trends. The task force comprises the International Energy Team (headed by the director general of the Ministry of Trade, Industry and Energy's Office of Industrial Resources and Security), the Economic Conditions and Supply Chain Team (headed by an assistant vice minister at the Ministry of Finance and Economy), the Financial Markets Team (headed by the secretary general of the Financial Services Commission), and the Ministry of Foreign Affairs Trends Team, among others. The task force will monitor 24 hours a day the situation on the ground in the Middle East as well as domestic and overseas financial markets and the real-economy impact on energy, exports, shipping, aviation and supply chains. In the event of an incident, it plans to respond swiftly under interagency coordination in line with pre-established scenario-based response plans.

Reporter Kim Ik-hwan lovepen@hankyung.com