Seoul: Prime Minister Kim Min-seok announced on Wednesday the formation of two emergency economic teams at Cheong Wa Dae and his office to manage South Korea's response to the escalating Middle East crisis.
According to Yonhap News Agency, the decision to create an emergency economic situation room at Cheong Wa Dae, alongside an emergency economic headquarters under the prime minister's office, comes in light of the expanding conflict involving the United States, Israel, and Iran. These measures are designed to prepare the nation for potential worst-case scenarios that could significantly impact the economy and citizens' livelihoods.
During a briefing, Prime Minister Kim emphasized the importance of a proactive government response to a prolonged crisis. This initiative follows President Lee Jae Myung's directive to activate a preemptive emergency response system aimed at mitigating economic disruptions.
Cheong Wa Dae further elaborated that President Lee's chief of staff, Kang Hoon-sik, will lead the situation room, supported by National Security Adviser Wi Sung-lac and Kim Yong-beom, the presidential chief of staff for policy, as deputies. The situation room will consist of five specialized groups focusing on macroeconomic, energy, financial, livelihood, and international issues.
Hong Ihk-pyo, senior presidential secretary for political affairs, acknowledged the current difficulty in assessing the crisis's trajectory but stressed the government's readiness with various contingency plans. He noted that restoring energy supplies could take approximately four months.
The emergency economic headquarters will be spearheaded by the prime minister, with the deputy prime minister for economic affairs serving as deputy. This headquarters will meet bi-weekly, initially under the leadership of the prime minister and subsequently by the deputy prime minister. It will include five subdivisions dedicated to addressing impacts on different sectors, including macroeconomics, energy, finance, and the general populace's livelihoods, while also keeping an eye on international developments.
Prime Minister Kim expressed confidence that through a concerted national effort and timely government actions, South Korea could overcome the crisis and harness new opportunities for significant national progress. Given the country's heavy reliance on oil and gas imports via the now-closed Strait of Hormuz, the government has instituted energy conservation measures, such as a rotational license plate-based system for public vehicles and recommendations for reduced water and power usage.