▲ Finance Minister Koo Yun-cheol speaks during a meeting of economy-related ministers at the government complex in Seoul on March 11, 2026. (Yonhap)

(LEAD) govt-Middle East

(LEAD) Gov't mulls targeted extra budget to help vulnerable groups as fuel prices surge: finance chief

(ATTN: RECASTS headline, lead; ADDS more info throughout)

By Kim Han-joo

SEOUL, March 11 (Yonhap) -- South Korea is considering a targeted supplementary budget aimed at helping those hardest hit by rising fuel prices, such as truck drivers, amid economic uncertainties stemming from the ongoing crisis in the Middle East, Seoul's finance chief said Wednesday.

"The aim is to provide relief to those who are suffering the most from rising petroleum prices," Finance Minister Koo Yun-cheol remarked during a parliamentary questioning session.

Financial markets showed heightened volatility, with the Korean won falling sharply against the U.S. dollar and domestic fuel prices spiking following U.S.-Israeli strikes on Iran and Tehran's retaliatory attacks in the region.

Koo said those most affected include truck drivers, delivery workers, farmers and fishermen.

Earlier, Koo said the government will mobilize all available policy tools and activate an emergency economic response system to address the situation. Measures under review include a temporary cap on domestic fuel prices.

The finance minister said the government would review the market situation every two weeks when operating the proposed fuel price cap.

When repeatedly asked what level of oil prices might allow the government to lift the price cap, Koo said it could be considered if prices fall back to around 1,800 won (US$1.23) per liter.

Authorities are also preparing additional measures, including a ban on hoarding, and price gouging of petroleum products and fuel-linked subsidies for diesel used by freight trucks, buses and taxis.

To address uncertainty surrounding energy supplies, particularly concerns over possible disruptions to shipping through the Strait of Hormuz, a key global energy route, the minister said the government would adopt a zero-tolerance stance toward potential collusion by oil refiners.

"We will prevent hoarding and refusal to sell by oil refiners and gas stations by introducing a public notice banning stockpiling and speculative practices involving petroleum products," Koo said during a meeting of economy-related ministers held earlier in the day.

South Korea, which depends heavily on imported energy, is particularly vulnerable to external price shocks that often fuel inflation.

(END)

[ⓒ K-VIBE. 무단전재-재배포 금지]