Seoul: The chief policymaker of South Korea's Democratic Party (DP) has raised alarms over a potential decline in exports to the Middle East due to an expanding U.S.-Israeli military action against Iran. In response, measures are being prepared to address an anticipated prolonged geopolitical crisis in the region.

According to Yonhap News Agency, Rep. Han Jeoung-ae, chair of the National Assembly's policy committee, expressed these concerns during a meeting with DP lawmakers from relevant parliamentary committees. She highlighted that South Korean exports to major Middle Eastern countries, which amounted to approximately 200 trillion won (US$136.7 billion) last year, could be significantly impacted by the escalating conflict.

Rep. Han pointed out the risk to projects in the Middle East valued at around 100 trillion won. These projects, encompassing sectors like smart cities, nuclear power plants, and artificial intelligence data centers, have been identified by South Korean companies as future growth opportunities. She warned that these initiatives might face delays or even cancellation.

To mitigate the economic impact, Han mentioned that the government is preparing a 100 trillion-won market stabilization program. This initiative comes amid growing geopolitical concerns following last week's U.S.-Israeli attacks on Iran.

The meeting included DP lawmakers from the National Assembly's foreign affairs, industry, and finance committees, along with officials from business groups, such as the Korea Enterprises Federation.