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Finance minister calls for proactive policy measures to prepare for prolonged Middle East crisis

Published: 22 Mar. 2026, 19:25

Symbolic mock-ups of Iranian missiles are displayed on a street in Tehran on March 22 amid the U.S.-Israeli conflict with Iran. [REUTERS/YONHAP]

Finance Minister Koo Yun-cheol on Sunday called for proactive policy measures to prepare for a prolonged Middle East crisis, as the conflict surrounding Iran has pushed up global oil prices and heightened economic uncertainties.

“In addition to the swift formulation and execution of a supplementary budget, we must actively identify and utilize a range of policy tools that do not require budget spending, such as financial, tax and regulatory measures,” Koo said during an interministerial meeting on the Middle East crisis, according to the Ministry of Finance and Economy.

The minister warned that rising global oil prices amid supply disruptions could increase overall inflationary pressure, and he urged thorough on-site inspections to ensure the effective implementation of the price cap system for petroleum products, along with other measures to stabilize consumer prices.

Koo also emphasized the need to swiftly devise energy supply management plans, such as expanding alternative power generation and promoting energy conservation, the ministry said.

The government has been scrambling to outline various policy measures since the conflict began at the end of February to minimize its impact on markets and the broader economy, as the country is heavily dependent on energy imports.

The ruling Democratic Party and the government agreed to draw up and submit this year's first supplementary budget bill to the National Assembly by the end of March, following President Lee Jae Myung's orders to swiftly prepare to cope with the fallout from the ongoing conflict.

Yonhap