Seoul, March 29 – South Korean Prime Minister Kim Min-seok vowed on Sunday to take preemptive measures against potential shortages of essential goods, as the Middle East crisis has disrupted global energy markets and driven up energy prices.
"We are at a critical economic juncture," Kim said during an emergency economic headquarters meeting. "The aftermath of the Middle East conflict is emerging as a complex crisis for our economy, in the form of severe energy supply instability and global supply chain disruptions."
He stressed that now is a critical time to respond to potential supply shocks, warning that failure to act promptly could lead to significant public anxiety and inconvenience, Yonhap News Agency reported.
"We need to analyze the impact of supply disruptions originating in the Middle East on essential goods under various scenarios and establish phased response plans," he said. "We need to thoroughly and meticulously review the items expected to face supply disruptions without missing a single one."
He also called on the government to work closely with the National Assembly and prepare to execute a supplementary budget in a timely manner.
The emergency economic headquarters was convened for the first time after the prime minister announced its creation last week, along with the establishment of an emergency economic situation room at Cheong Wa Dae, in response to the Middle East crisis.
There are five sub-teams within the headquarters, each handling macroeconomic, energy, financial, people's livelihood and overseas issues.
The energy sub-team, for example, reported supply and price trends related to oil, gas and naphtha, while the financial sub-team shared plans to expand assistance to businesses struggling due to the crisis and the people's livelihood sub-team discussed preparations against potential disruptions to medical supplies.