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President calls for supplementary 'war budget' to shield livelihoods as oil prices skyrocket

Published: 19 Mar. 2026, 18:10

SARAH KIM
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President Lee Jae Myung, second from right, speaks on the Middle East situation during a meeting with senior presidential aides at the Blue House in central Seoul on March 19. He is flanked by National Security Adviser Wi Sung-lac, right, and his chief of staff, Kang Hoon-sik, third from right. [JOINT PRESS CORPS]

President Lee Jae Myung referred to the impact of the Middle East crisis on the domestic economy as that of a "state of war" and reiterated his call for a swift supplementary budget, which he described effectively as a "war budget" on Thursday.

"It is difficult to predict how long this war will continue," Lee said in a meeting with senior presidential aides at the Blue House in central Seoul, discussing economic readiness posture amid the Middle East crisis following the U.S.-Israeli military strikes on Iran, resulting in retaliatory measures from Tehran. "I ask the Blue House and all government ministries to maintain a solemn attitude, recognizing that we are currently in a state of economic war."

He said that the "supplementary budget, which could effectively be called a 'war budget,' must be formulated in a way that mitigates the impact on the people's livelihood and sustains the momentum of economic recovery."

The call for a swift extra budget comes as the Middle East crisis has led to soaring fuel prices and market volatility.

Lee asked aides to "swiftly design a plan that can substantially reduce the damage to vulnerable groups, small business owners and companies that have been hit particularly hard by the situation in the Middle East, and ensure the smooth circulation of funds in the field."

"As uncertainty regarding the war situation in the Middle East intensifies, there is a growing need for more proactive and long-term supply and demand management measures for crude oil and certain critical raw materials, Lee said. "Now more than ever, efforts to secure even a single drop of oil and establish stable supply lines are urgent."

He lauded chief of staff Kang Hoon-sik's visit to the United Arab Emirates (UAE) earlier this week, which enabled Korea to secure a total of 24 million barrels of crude oil. Kang said Wednesday that the UAE has promised to "prioritize" Korea in crude oil supply.

During the meeting with aides, Lee also discussed the revitalization of local commercial districts, preferential treatment for local companies in public procurement, the establishment of regionally-led research and development systems and the promotion of tourism.

"Strictly adhere to the principles of prioritizing and favoring local regions across all sectors of investment, research and education," Lee said, because "the local economy, which was already sluggish, is facing even greater difficulties due to the prolonged situation in the Middle East."

"Please strive to ensure that these standards are clearly applied in the drafting of this supplementary budget as well," he added.

President Lee Jae Myung speaks on the Middle East situation during a meeting with senior presidential aides at the Blue House in central Seoul on March 19. [JOINT PRESS CORPS]

Lee also referred to the surge in the number of tourists visiting Korea and the congestion at Incheon International Airport ahead of the BTS concert in central Seoul's Gwanghwamun on Saturday.

He said that while the Ministry of Justice has been implementing special entry screening measures since Wednesday, there needs to be "rapid deployment of necessary personnel and equipment," noting that the airport's arrival hall "determines a country's first impression."

Lee said this would be an "opportunity to comprehensively review overall airport entry services and quickly improve any areas that require supplementation."

He added that as significant congestion is predicted for the BTS concert, some people are experiencing inconveniences due to the restrictions imposed to maintain order.

"I ask that you ensure order is properly maintained so that both aspects can be harmonized, while also paying close attention to ensure our people do not experience any inconveniences."

BY SARAH KIM [[email protected]]