President Lee: “Swift war-related extra budget... car-use rotation schemes and other measures to be prepared”

President Lee Jae Myung on the 17th addressed growing uncertainty stemming from the Middle East, stressing, “We must prepare measures on the assumption that the situation will be prolonged and with the worst-case scenario in mind.” He also called for the swift formulation of a war-related supplementary budget to enable an active response to the crisis.
At the State Council of South Korea meeting held that day at Government Complex Sejong, President Lee said, “The situation in the Middle East is expanding in ways that far exceed our initial expectations. If the current pattern continues, oil prices, which had briefly stabilized, will become volatile again, and the impact on people’s livelihoods across the board is likely to grow.”
President Lee emphasized, “Just as we secured additional crude oil from the United Arab Emirates (UAE), we must mobilize all our diplomatic capabilities and assets and make every effort to develop additional supply channels.”
At the same time, he noted that public understanding and participation would be essential, saying that energy-saving measures such as a five-day car rotation system would be necessary, given the severity of the situation.
“To ensure that energy-saving efforts spread across society, I ask that, if necessary, you swiftly draw up a range of demand-reduction measures, including a five-day or even a ten-day car rotation system,” President Lee said. “If needed, we should also consider export controls and expand the operation of nuclear power plants (NPPs). Such emergency measures must be pursued as well,” he added.
He particularly reiterated the need for a swift extra budget to support low- and middle-income households. On the 12th, during a meeting with senior presidential aides, President Lee had already urged Policy Chief Kim Yong-beom to work on the supplementary budget “even if it means staying up all night,” pointedly adding, “There is no such thing as a weekend.”
“As the situation continues to deteriorate, the lives of ordinary people are becoming increasingly strained,” President Lee said. “In light of this, I ask that you swiftly draw up a war-related supplementary budget to support vulnerable groups and export-oriented companies,” he continued. He went on, “This morning, party leader Jung Chung-rae said that budget deliberations would proceed at an unprecedented pace. I ask the National Assembly of the Republic of Korea as well to ensure that the war-related extra budget is executed without delay.”
The State Council of South Korea meeting also touched on the real estate tax system. President Lee said, “The entire territory of the Republic of Korea (South Korea) has turned into an object of speculation and investment, and finance has had the greatest impact on this,” adding, “I hope you will carefully work out the right approach.”
Regarding tax reforms that have been discussed as a measure to stabilize housing prices, he remarked, “Taxation is the last resort. Clearly, if we compare it to war, taxes are like a nuclear bomb. They must not be used carelessly,” but he also added, “Nevertheless, if we reach a situation where, as a final measure, they absolutely must be used, then we have to use them. Please make thorough preparations.”
Meanwhile, at the meeting that day, the Special Act for Korea-US Strategic Investment Management, a follow-up legislative measure to the South Korea–United States Tariff Negotiations, was approved. The Korea-US Strategic Investment Special Act completed the State Council of South Korea approval process just five days after it passed the National Assembly of the Republic of Korea with bipartisan support.
cjk@fnnews.com Choi Jong-geun, Sung Seok-woo Reporter