Lee warns of crisis, says emergency fiscal powers could be used

Mar 31, 2026, 12:02 pm

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Lee Jae-myung speaks during a Cabinet meeting at the presidential office on March 31. / Yonhap

Lee Jae-myung on March 31 warned of growing economic risks stemming from the worsening situation in the Middle East, stating that emergency fiscal powers could be invoked if necessary.

Speaking at a Cabinet meeting, Lee said, “We must respond boldly without being constrained by existing practices,” adding, “If necessary, we can utilize constitutionally granted emergency fiscal orders.”

He emphasized that crisis response should be proactive rather than reliant on routine procedures, noting that legislation should be pursued if needed and that the government must fully exercise its authority and capabilities.

Global warning signs intensify

Lee described the global economic situation as entering an “emergency phase,” citing the escalation of tensions in the Middle East.

“The worsening situation has triggered warning signals for the global economy,” he said, noting that the OECD has lowered growth forecasts for major economies and that oil prices could rise to as high as $135 per barrel in the second quarter.

Given South Korea’s high dependence on external resources, Lee stressed the need for thorough monitoring and contingency planning for energy and raw material supply chains.

Tightened control of key materials

The president also called for stricter management of critical materials, including naphtha, urea, urea solution, helium, and aluminum.

“These items should be managed at a level equivalent to wartime supplies,” he said, adding that essential goods such as medical supplies should be treated with the same level of urgency.

Addressing public anxiety and misinformation

Lee noted that some concerns over shortages of everyday goods may be exaggerated, citing cases where supply was sufficient but localized issues triggered public anxiety.

“Such situations can be managed through cooperation among local governments,” he said, instructing authorities to strengthen oversight to prevent recurrence.

He also warned against the spread of misinformation, stating, “In times of crisis, the dissemination of false information online can heighten market instability,” and called for swift and strict action by investigative authorities.

#Lee Jae-myung #emergency fiscal order #Middle East crisis #energy supply