South Korea braces for 'worst-case scenarios' as Iran oil shock deepens
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South Korean Prime Minister Kim Min-seok warned the government must prepare for "worst-case scenarios" stemming from the Middle East conflict.
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South Korea
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South Korea, officially the Republic of Korea (ROK), is a country in East Asia. It constitutes the southern half of the Korean Peninsula and borders North Korea along the Korean Demilitarized Zone, with the Yellow Sea to the west and the Sea of Japan to the east. South Korea claims to be the sole le...
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South Korea stepped up its emergency economic planning on Wednesday as Prime Minister Kim Min-seok warned the government must prepare for "worst-case scenarios" from a Middle East conflict that has shown no sign of abating. The government planned to set up an emergency economic task force, led by Kim, to coordinate cross-ministerial efforts, the prime minister said at a press briefing, according to Yonhap News Agency . "It is time to step up the government's preemptive response system to prepare against a prolonged situation, including worst-case scenarios," Kim said. The group will convene twice a week across five working groups, overseeing the war-induced impact on energy, the macroeconomy, financial markets and household livelihoods, as well as overseas situation monitoring. Separately, an emergency economic situation room will also be set up at the presidential office, Kim added. The moves follow South Korean President Lee Jae Myung's instruction on Tuesday to activate a preemptive emergency response system, as Seoul stepped up efforts to manage the economic fallout from the conflict. The Asian country imports around 70% of its crude oil and 20% of liquefied natural gas from the Middle East, leaving the economy particularly vulnerable to prolonged disruptions in energy flows. The Strait of Hormuz , a narrow waterway connecting the Persian Gulf and the Gulf of Oman and carrying one-fifth of global energy flows, has been effectively closed by Iran since the war began on Feb. 28. The disruption has rattled global energy markets, reigniting inflationary pressures stemming from surging energy prices. South Korea has rolled out several emergency measures as the Iran turmoil deepened, including imposing a fuel price cap for the first time in nearly three decades to contain a spike in energy prices. watch now VIDEO 3:18 03:18 BoK to face 'hawkish pressures' if Iran conflict affects core inflation: JPM Squawk Box Asia The price caps could lower retail fuel prices by roug...
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