President Lee Orders Implementation of Fuel Price Ceiling System [U.S.–Iran War]

President Lee Jae-myung of South Korea convened an extraordinary meeting of the State Council of South Korea at Cheong Wa Dae (the Blue House) on the 5th to assess the situation in the Middle East and discuss the government’s response. At the meeting, Lee ordered the introduction of a "maximum price designation system" for gasoline and other fuels to curb sharp increases in oil prices triggered by instability in the region. He also stressed that authorities must respond firmly to hoarding and any attempts to reap unreasonable windfall profits. In addition, he called for active measures to address rising volatility in financial markets, including stocks and foreign exchange, and urged the swift execution of a 100 trillion won market stabilization program.
Having returned the previous day from a four-day state visit to two member states of the Association of Southeast Asian Nations (ASEAN), Lee said at the State Council of South Korea meeting, "In terms of fuel supply, there has not yet been any objectively serious disruption, and yet prices have suddenly surged. 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 then asked, "Please discuss what specific measures are available to sanction this behavior."
Lee went on to instruct officials to implement a maximum price designation system for fuel. When Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol noted, "In the past, maximum prices were applied only in very exceptional cases, such as for coal and briquettes," Lee responded, "We are now in an exceptional situation," and emphasized, "At this moment, setting maximum prices appears to be the most realistic measure that can be implemented quickly."
Lee added, "If we set a single nationwide ceiling, it will cause problems, so promptly designate realistic maximum prices by region and by type of fuel." Article 2 of the Price Stabilization Act allows the government to set maximum prices when there are reasons specified by presidential decree, such as domestic or external crises, natural disasters, or urgent fiscal and economic emergencies. Violations are subject to recovery of the entire amount of unjust gains in the form of penalty surcharges.
He also underscored the need for proactive steps to stabilize financial markets. Lee stated, "The government should accelerate its policy efforts to stabilize and strengthen the structure of the capital market, and I ask that the 100 trillion won market stabilization program, prepared to preempt instability in the capital market, be executed and managed appropriately and swiftly."
cjk@fnnews.com Choi Jong-geun, Sung Seok-woo Reporter