Seoul: An official at the International Monetary Fund (IMF) stated Thursday that South Korea possesses "substantial" energy buffers, despite facing vulnerabilities due to energy supply disruptions triggered by the ongoing U.S.-Israeli conflict with Iran.

According to Yonhap News Agency, Thomas Helbling, deputy director of the IMF's Asia-Pacific Department, made these remarks during a press conference focused on the economic outlook for the Asia-Pacific region. The disruptions to maritime traffic through the Strait of Hormuz, a crucial shipping corridor for oil, gas, fertilizer, and other commodities, have raised significant concerns.

Helbling praised the South Korean government's proactive efforts to mitigate the impact of the energy shock. "The government has been very proactive trying to mitigate the impact of the shock," he noted. He emphasized South Korea's advantage of having substantial energy buffers and its proactive stance in encouraging alternative energy sources. However, he also highlighted the nation's vulnerabilities amidst the ongoing conflict.

"Korea, as for the vulnerability, is in line with Asia as a whole. It's an energy importing region," Helbling remarked, pointing to the inherent challenges faced by South Korea.

The economic repercussions of the Middle East conflict have raised concerns in South Korea, as escalating energy prices threaten to drive up inflation rates. South Korea, like other Asian nations such as China and Japan, heavily relies on energy imports from the Middle East to fuel its economy.

During the press conference, Krishna Srinivasan, director of the IMF's Asia and Pacific Department, commented on Asia's significant exposure to the energy shock. He attributed this vulnerability to the region's high energy-intensity, reliance on energy imports, and exposure to the shock through non-energy imports.