Korea launches emergency economic response over Middle East crisis

Mar 25, 2026, 10:12 am

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Prime Minister Kim Min-seok speaks during a government briefing on the launch of an emergency economic response system at the Government Complex Seoul on March 25. / Asia Today reporter Park Sung-il

The South Korean government has entered an emergency economic response mode and launched a new task force to counter growing risks from the prolonged Middle East conflict.

Prime Minister Kim Min-seok announced on March 25 the establishment of an “Emergency Economic Headquarters” to manage the impact of energy and raw material shortages caused by the ongoing crisis.

“The government needs to strengthen a whole-of-government response system, including preparation for worst-case scenarios, as the Middle East conflict drags on,” Kim said during a briefing at the Government Complex Seoul.

The new headquarters will operate as an inter-ministerial “one-team” system, executing policies outlined by the presidential Emergency Economic Review Meeting, which will serve as the control tower. In addition, the presidential office plans to run a separate emergency economic situation room.

The headquarters is an expanded and upgraded version of the previous emergency economic ministers’ meeting, now elevated to be chaired by the prime minister. Deputy Prime Minister and Finance Minister Koo Yun-cheol will serve as deputy head, overseeing working-level task forces.

Five response teams will be established under the headquarters:

- Macroeconomy and inflation response

- Energy supply management

- Financial stability

- Public welfare support

- Overseas situation monitoring

Each team will be led by the respective minister, with overall coordination handled by the deputy prime minister.

The headquarters will begin full-scale operations next week following a presidential meeting and will convene twice a week, with flexibility depending on developments in the Middle East.

Kim also urged the National Assembly to swiftly approve a supplementary budget to address the crisis, saying, “Timing is everything in crisis response. A supplementary budget to protect livelihoods and stabilize the economy is not optional but essential.”

He added that the government will use the crisis as an opportunity to strengthen supply chain resilience, reform capital markets, and accelerate the transition to a new energy structure.

Kim also called on citizens to participate in energy-saving efforts, including using public transportation and reducing electricity consumption.

#emergency economic response #Middle East crisis #South Korea government #Kim Min-seok #energy supply