President Lee: "We need sanctions on soaring fuel prices and a designated maximum price"

[The Financial News] President Lee Jae Myung convened an emergency Cabinet meeting at Cheong Wa Dae on the 5th to assess the situation in the Middle East and discuss response measures. At the meeting, President Lee ordered the introduction of a "maximum price system" for gasoline and other fuels to curb the surge in oil prices caused by instability in the Middle East. He also stressed a firm response to any attempts at hoarding or taking unreasonable windfall profits, and instructed the government to actively respond to rising volatility in financial markets, including stocks and exchange rates.
Having returned the previous day from a four-day state visit to two member states of the Association of Southeast Asian Nations (ASEAN), President Lee said at the Cabinet meeting, "In terms of fuel supply, there has not yet been any objectively serious disruption, and yet prices have suddenly soared. I have heard that prices differ in the morning, at noon, and in the evening, and that some places have raised prices by nearly 200 won per liter." He continued, "Please discuss in concrete terms what measures are available to sanction this behavior."
President Lee then instructed the government to implement a maximum price system for fuel. When Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol noted that "in the past, maximum prices were applied only in very exceptional cases, such as for coal and briquettes," President Lee responded, "We are now in an exceptional situation," adding, "Designating maximum prices seems to be the most realistic measure that can be taken quickly at this moment."
President Lee said, "If we set a single nationwide maximum price, it will cause problems, so designate realistic maximum prices as quickly as possible by region and by type of fuel."
Article 2 of the Price Stabilization Act stipulates that when there are reasons prescribed by presidential decree, such as domestic or external crises, natural disasters, or urgent fiscal and economic emergencies, and when it is deemed necessary for the stability of people’s livelihoods and the national economy, the government may designate maximum prices. Any violation is subject to the recovery, in the form of a surcharge, of the full amount of unjust gains.
Spokesperson Kang Yu-jeong said at a briefing at Chunchugwan that President Lee "strongly condemned gas stations that raised fuel prices by nearly 200 won per liter in a single day, and called for penalties and surcharges that go beyond existing sanctions such as business suspension and collusion investigations." She added that he "emphasized the need for a fundamental shift in thinking, such as improving the gas station reporting system or drastically extending the period of business suspension."
On the issue of unfairly inflated prices, or so-called price gouging, he said, "At present, it seems impossible to conduct crackdowns and impose administrative sanctions," and ordered, "Quickly review and establish a system to sanction this. This is not something we can just leave unattended." He also instructed officials to create a website or comparison platform that discloses the purchase prices of fuel at gas stations.
He further emphasized active measures to stabilize financial markets, including stocks and exchange rates. President Lee said, "The government should accelerate policy efforts to stabilize and strengthen the structure of capital markets, and I ask that the 100 trillion won market stabilization program, prepared to preempt instability in capital markets, be implemented and managed appropriately and swiftly."
President Lee also said, "We will overcome this turmoil without difficulty through the united strength of our people," adding, "We may even be able to turn this into a good opportunity, like taking a brief rest after a fall."
He went on to say, "Fake news tends to run rampant in times like these, and I ask that criminal acts such as market manipulation be thoroughly blocked," stressing, "In particular, those who seek to profit by fomenting confusion in the national economy must be held strictly accountable under a principle of zero tolerance."
Regarding the safety of Korean nationals living in the Middle East, he said, "Please prepare emergency evacuation plans with double and triple layers of detail in case of any contingency," and ordered, "If necessary, work in coordination with friendly nations, and mobilize every possible means, including military aircraft, chartered planes, and overland transport."

cjk@fnnews.com Choi Jong-geun, Sung Seok-woo Reporter