South Korea gradually feeling impact of prolonged Middle East crisis
South Korea is gradually feeling the impact of the prolonged conflict in the Middle East through higher consumer prices despite strong export data, the finance minister said on Friday, vowing proactive steps to stabilise supply chains.
Finance Minister Koo Yun-cheol presided over a meeting of economy-related ministers in Seoul to discuss countermeasures against the economic fallout from the geopolitical crisis in the Middle East, according to the Ministry of Finance and Economy, reports Yonhap news agency.
"While South Korea has shown strong resilience against crises by posting record exports, current account surpluses and stock market indexes, the prolonged war has started to have a visible impact on the real economy and people's livelihoods," Koo was quoted as saying by the ministry.
"The government intends to minimise challenges to people's livelihoods caused by the Middle East crisis while closely monitoring situations at home and abroad," the minister added.
Koo also expressed gratitude to local gas stations for their cooperation with the government's fuel price ceiling scheme, noting market prices currently remain below the cap.
The finance minister said the government is drawing up an economic growth strategy for the second half of 2026 with a focus on strengthening the country's economic security by taking lessons from the Middle East war.
South Korea will closely review changes in the economic environment, including the boom in the semiconductor industry, along with measures to ease economic polarisation, he added.
The country will release the growth strategy for the second half at the end of June, according to the ministry.
Koo additionally presided over a meeting of real estate-related ministers, where he said the government will take all available measures to stabilise the property market.
"A prompt supply of housing is more critical than anything else," Koo said, noting the government will work to shorten the process of supplying more homes to the public.
"The government is thoroughly monitoring unfair practices in the real estate market with relevant organisations and taking stern action," he added.
