Crude Oil Reserves Sufficient for Over 200 Days
24-Hour Monitoring in Response to Rapid Geopolitical Changes
On the 27th, a meeting to review security and economic situations related to the Middle East was held at the Yongsan Presidential Office building in Seoul, jointly chaired by Sung Tae-yoon, Chief of Policy Office of the Presidential Office, and Kim Tae-hyo, First Deputy Director of the National Security Office. [Image source=Yonhap News]
The Presidential Office recently predicted that the impact of the deteriorating Middle East situation on our economy will be limited. However, it stated that if a sharp surge in global oil prices occurs, measures such as additional reductions in fuel tax will be taken.
On the 27th at 2 p.m., the Presidential Office held a security and economic situation review meeting co-chaired by Policy Chief Sung Tae-yoon and First Deputy Director of the National Security Office Kim Tae-hyo to assess the impact of Israel's attack on Iran on our security and economy.
The attendees noted that since Israel's attack on Iran occurred over the weekend, there has been no impact on the domestic financial market yet. However, they agreed to closely monitor the potential effects on the financial, oil, and crude oil markets as the situation develops and to respond actively.
The Presidential Office stated, "At present, the geopolitical risks in the Middle East are expected to have a limited impact on our economy," but added, "We will maintain a 24-hour monitoring system in preparation for rapid changes in the Middle East situation and will promptly implement phased measures according to the response manual if necessary."
Regarding crude oil, since our country does not directly import from Iran, it is predicted that there will be little impact on domestic crude oil supply and prices.
However, the Presidential Office explained, "If significant volatility occurs due to the global oil market, we will respond with various stabilization measures such as additional reductions in fuel tax."
According to the Presidential Office, the current crude oil reserves are sufficient for more than 200 days. It confirmed that there are no abnormalities in the supply and transportation of crude oil and gas. The government will continue to monitor the damage and ripple effects on not only domestic companies but also Korean companies operating in the Middle East.
The Presidential Office added, "The government will work closely with the international community to ensure the swift restoration of stability in the Middle East and will proactively take necessary measures by each ministry according to future developments."
Attendees at the meeting included Policy Chief Sung, Deputy Director Kim, First Vice Minister of Strategy and Finance Kim Beom-seok, First Vice Minister of Foreign Affairs Kim Hong-gyun, Deputy Minister of National Defense Kim Seon-ho, Second Vice Minister of Trade, Industry and Energy Choi Nam-ho, Deputy Minister of Oceans and Fisheries Song Myung-dal, Vice Chairman of the Financial Services Commission Kim So-young, Second Deputy Director of the National Intelligence Service Hwang Won-jin, and Second Deputy Director of the National Security Office In Seong-hwan.
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