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President Lee Jae-myung speaks during a press conference marking his first anniversary in office, held at the Cheong Wa Dae Yeongbinguan (State Guest House) on the 8th. / Photo via Yonhap News

President Lee Jae-myung projected on the 8th regarding the high oil price crisis resulting from the prolonged war in the Middle East that "due to instability, it will not be very easy for crude oil prices to return to the past or normalize." The government plans to initiate preemptive inflation defenses by implementing a maximum price system and utilizing strategic oil reserves.

President Lee gave this response to questions from reporters asking about countermeasures against the economic shock caused by the Middle East war during the "Presidential Press Conference and Policy Debate Marking the First Anniversary of Inauguration" held at the Cheong Wa Dae Yeongbinguan (State Guest House) on this day.

Regarding the current situation in the Middle East, President Lee foresaw, "Although ceasefire talks continue, airstrikes and retaliations persist, making it unlikely to end anytime soon," adding, "Since substantial infrastructure and pipelines have already been destroyed, a considerable period will be required for recovery even if a ceasefire is reached immediately."

However, President Lee explained, "Because we are taking stability measures such as diversifying import sources, over 87% of the supply and demand is currently operating normally," and "The remaining shortage of around 10% can be fully overcome through export controls and other means."

He continued, "While we judge that the supply and demand itself can be managed, the problem is inflation," expressing concern that "the rise in petroleum product prices is so sharp that its impact on other consumer prices is highly significant." To counter this, the government plans to mobilize all available resources to curb the margin of price increases. As specific countermeasures, President Lee mentioned implementing a maximum price system, utilizing strategic oil reserves, and providing cost compensation support for importing through diversified lines.

President Lee emphasized, "If we continue to normalize market order and manage unnecessary and excessive price hikes going forward, we will be fully capable of avoiding the worst-case scenario," adding, "Currently, South Korea's overall inflation rate is being managed relatively stably compared to other nations. We will mobilize the country's capabilities to the maximum to prevent the situation from escalating into a crisis."

                                                                                                             Shim Jun-bo