On March 5, 2026, South Korean President Lee Jae-myung convened an emergency cabinet meeting to assess the potential impact of the Middle East situation on the South Korean economy and financial markets and to discuss response measures. Lee Jae-myung pointed out that as the Middle East conflict intensifies, South Korea needs to actively address the increasing volatility in financial markets such as the stock and foreign exchange markets.
Market Stabilization Plan and Financial Support
During the meeting, Lee Jae-myung instructed relevant departments to promptly implement a 100 trillion won market stabilization project to alleviate anxiety in the capital market. The Chairman of the Financial Services Commission of South Korea stated that these measures are not intended to artificially boost stock prices but are mainly aimed at stabilizing the bond market and short-term money markets.
Lee Jae-myung emphasized that the government will adopt a zero-tolerance policy and seriously hold accountable those who spread false information or disrupt the situation during market turbulence.
Support Energy Supply and Price Stability
The meeting highlighted energy and price issues as key topics. Lee Jae-myung noted that energy supply and pricing directly impact people's livelihoods, and the government needs to focus on the stability of oil supply and expand import channels. He called for implementing a "maximum price designation system" to curb the rapid rise in oil prices, particularly setting maximum prices for gasoline and other fuels based on region and fuel type.
Strengthening Policy Support for Affected Industries
Lee Jae-myung also urged strengthening support for industries significantly affected by the Middle East situation, especially enterprises relying on exports to the Middle East and the shipping industry, by providing prompt and extensive policy-based financial support.
Ensuring the Safety of South Korean Citizens
Regarding the safety of South Korean citizens in the Middle East, Lee Jae-myung requested that government departments develop comprehensive emergency evacuation plans to ensure the safe return of South Korean citizens. He stated that if necessary, cooperation with allies could be sought to implement evacuations via military aircraft, chartered flights, or land transportation.
