Seoul: The end of the war between the United States and Iran, along with the stabilization of fuel prices, are essential conditions for lifting the price ceilings on domestic fuel products, Industry Minister Kim Jung-kwan announced on Monday.
According to Yonhap News Agency, the minister outlined three prerequisites for ending the price cap system: the cessation of the Iran conflict, the normalization of crude oil delivery with the reopening of the Strait of Hormuz, and reaching a consensus on improving the relationship between oil refineries and gas stations. These remarks were made during a press briefing in response to queries about the government's plans regarding the continuation of the price ceilings, following Prime Minister Kim Min-seok's statement last week about a careful review of the system.
Kim emphasized that it is premature to discuss terminating the system, given the uncertainty surrounding the end of the U.S.-Iran conflict and its long-term impact on international fuel prices. He noted that the system has maintained a balance in the fuel market, with gasoline prices in South Korea only rising by around 10 percent from pre-war levels, compared to a 30-40 percent increase in the U.S.
The Ministry of Trade, Industry and Resources recently froze price ceilings on gasoline, diesel, and kerosene for the second consecutive time, setting them at 1,934 won (US$1.30), 1,923 won, and 1,530 won per liter, respectively. The government has been setting maximum prices every two weeks since mid-March to stabilize domestic fuel prices.
Addressing the ongoing dispute between Samsung Electronics Co.'s management and labor union, Kim expressed hope for a "wise" and "mature" resolution. Unionized workers are threatening a massive strike, demanding significant increases in performance-based bonuses, which could disrupt semiconductor production and impact South Korea's vital industry.
Kim highlighted the importance of considering various factors contributing to Samsung's success, including suppliers, subcontractors, and the company's approximately 4 million shareholders. He stressed the need for continued investment to maintain the semiconductor industry's competitiveness, warning that losing it could lead to irreversible consequences.
Regarding the controversy involving Coupang, a U.S.-listed e-commerce firm accused of lobbying Washington to influence a probe into a massive data leak, Kim assured that the government is managing the issue to prevent it from affecting trade and security relations between South Korea and the U.S. Coupang has faced scrutiny after a data breach affected 33.7 million South Korean customers, and recent lobbying activities in the U.S. have raised concerns about the company's intentions. However, Coupang has denied all allegations.