Seoul: South Korea is deliberating over a targeted supplementary budget to assist those most affected by the rising fuel prices, including truck drivers, as economic uncertainties continue to loom due to the ongoing crisis in the Middle East, the country's finance chief announced on Wednesday. "The aim is to provide relief to those who are suffering the most from rising petroleum prices," Finance Minister Koo Yun-cheol stated during a parliamentary questioning session.

According to Yonhap News Agency, financial markets are experiencing increased volatility, with the Korean won declining significantly against the U.S. dollar and domestic fuel prices soaring following U.S.-Israeli strikes on Iran and retaliatory attacks by Tehran in the region. Koo identified truck drivers, delivery workers, farmers, and fishermen as the groups most affected by these developments.

Koo affirmed that the government plans to utilize all available policy tools and activate an emergency economic response system to tackle the situation. The measures under consideration include a temporary cap on domestic fuel prices. The finance minister noted that the government would assess the market situation every two weeks when managing the proposed fuel price cap.

When queried repeatedly about the level of oil prices that might prompt the government to lift the price cap, Koo suggested that such a move could be considered if prices fall back to around 1,800 won (US$1.23) per liter. Additional measures under preparation include a ban on hoarding and price gouging of petroleum products, as well as fuel-linked subsidies for diesel used by freight trucks, buses, and taxis.

To mitigate uncertainty surrounding energy supplies, particularly concerns over potential disruptions in shipping through the Strait of Hormuz-a critical global energy route-the minister stated that the government would adopt a zero-tolerance approach toward potential collusion by oil refiners. "We will prevent hoarding and refusal to sell by oil refiners and gas stations by introducing a public notice banning stockpiling and speculative practices involving petroleum products," Koo said during a meeting with economy-related ministers earlier in the day.

South Korea's heavy reliance on imported energy makes it particularly susceptible to external price shocks, which often contribute to inflation.