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Lee calls for supplementary budget to counter volatility from Middle East crisis

Published: 12 Mar. 2026, 18:45 Updated: 12 Mar. 2026, 19:04

SARAH KIM
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President Lee Jae Myung, center, speaks during a meeting with senior presidential secretaries at the Blue House in central Seoul on March 12. [JOINT PRESS CORPS]

President Lee Jae Myung urged aides on Thursday to swiftly prepare a supplementary budget to help with economic recovery and people's livelihoods amid concerns over the repercussions of the intensifying Middle East crisis.

"In times of crisis, swiftly injecting funds is essential to ensure that people's livelihoods and economic recovery are not hindered," Lee said during a meeting with senior presidential aides at the Blue House in central Seoul.

"A supplementary budget is inevitable," the president said, calling for an extra budget bill to be drafted "as swiftly as possible," while noting that this process usually takes one to two months.

Lee then lauded Korea's major manufacturers of ramyeon and cooking oil for slashing prices by up to double digits for some of their products, starting with next month's shipments, remarking that this will "greatly help in easing the burden of inflation on the people and stabilizing their livelihoods."

His remarks come amid recent volatility in oil prices and economic uncertainties following the U.S.-Israeli military strikes on Iran and Tehran's retaliatory actions.

"Concerns are growing over people's livelihoods and the economy as a whole due to factors such as rising domestic oil prices and instability in the supply of critical raw materials," Lee said. "If this situation persists, consumer investment sentiment will decline, weakening our hard-won economic recovery."

Lee then urged all ministries to "actively identify areas where monopolistic positions are being abused and actively investigate, track and take corrective action against those products that are unfairly profiting."

Ramyeon packages are on display at a supermarket in Seoul on the March 12, as major Korean food companies announced they will lower the prices of some of their instant noodle and cooking oil products starting next month. [NEWS1]

The Ministry of Agriculture, Food and Rural Affairs announced Thursday that Korea's four major instant noodle companies voluntarily decided to lower prices next month in keeping with the government's efforts to "ease the burden on consumers and stabilize perceived prices."

Nongshim, Samyang Foods, Otoki and Paldo said the decision aims to help ease consumers' living costs.

Food giant Nongshim said it will lower the prices of 12 ramyeon products, including Ansungtangmyun, and four snack items by an average of 7 percent starting April 1.

Samyang Foods also plans to cut the prices of two of its products by 14.6 percent starting April 1, but said its flagship Buldak spicy ramyeon will be excluded.

Otoki said it will lower the prices of eight ramyeon products by 6.3 percent. Paldo will cut the prices of 19 ramyeon products, including its signature Paldo Bibimmen, by 4.8 percent.

Other food companies including CJ Cheiljedang, Sajo Daerim and Lotte Wellfood announced plans to lower cooking oil prices in consideration of consumer interests.

This marks the first price cut by instant noodle makers since June 2023.

President Lee Jae Myung, center, speaks during a meeting with senior presidential secretaries at the Blue House in central Seoul on March 12. [JOINT PRESS CORPS]

Lee also shared a post on X regarding news of the food industry's plans to lower prices for ramyeon and cooking oil later on Thursday.

"While lowering product prices is not easy, we will minimize the burden on the public through thorough market monitoring and price management," Lee wrote. "Korea, notorious for having some of the highest prices in the world, must stop this unfair price hike that abuses its monopolistic position."

He also warned that "aside from companies that normalize their prices on their own, the Fair Trade Commission, the National Tax Service and investigative agencies will thoroughly monitor, investigate and sanction unfair practices such as collusion and abuse of market dominance."

"The Lee Jae Myung administration has been actively communicating with the industry, including holding meetings with major food companies closely related to the people's livelihoods," presidential spokesperson Kang Yu-jung said in a briefing later Thursday regarding food cost cuts. "We have reviewed cost situations and on-site difficulties, and have made various efforts to alleviate the burden of inflation."

She noted that other food products to be considered for reductions by a consumer price task force could include sugar, flour and starch syrup in its management plan and that "follow-up measures may be possible."

BY SARAH KIM [[email protected]]