South Korea will cap domestic fuel prices for the first time in nearly three decades to shield its economy from soaring energy costs. President Lee Jae Myung announced the measure, citing the impact of the Middle East conflict on global crude prices.
The government will "swiftly introduce and boldly implement" a maximum price system for petroleum products experiencing "excessive price increases." President Lee noted the significant burden on South Korea's import-reliant economy and stated the nation will seek alternative energy sources beyond the Strait of Hormuz.
A 100 trillion won market stabilization program is set to be expanded if necessary, with the government and central bank preparing further responses to financial market volatility. This comes as South Korean shares fell sharply, triggering circuit breakers, and the national currency weakened against the dollar.