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| ▲ Finance Minister Koo Yun-cheol (2nd from R) speaks during an emergency response meeting regarding the Middle East crisis in Seoul on March 1, 2026, in this photo provided by his office. (PHOTO NOT FOR SALE) (Yonhap) |
(LEAD) finance minister-Middle East
(LEAD) Finance minister warns of heightened market volatility amid Iran crisis
(ATTN: ADDS authorities' separate meeting in last 2 paras)
SEOUL, March 1 (Yonhap) -- Finance Minister Koo Yun-cheol said Sunday that heightened military tensions surrounding Iran are expected to increase volatility in global financial and energy markets, vowing round-the-clock monitoring through a governmentwide emergency response team, the finance ministry said.
Koo made the remarks while presiding over an emergency meeting in Seoul, following a joint U.S.-Israeli strike on Iran a day earlier that reportedly killed Iran's Supreme Leader Ayatollah Ali Khamenei amid stalled negotiations over Tehran's nuclear program.
"We rely heavily on the Middle East for energy, and a swift response is needed due to volatility in global energy prices stemming from potential instability in the Strait of Hormuz," Koo said. "Given the high level of uncertainty, we should remain on heightened alert and respond with vigilance."
South Korea currently has sufficient strategic oil reserves and response capacity to cope with potential supply disruptions, Koo said, adding that the government is preparing to release oil reserves into the domestic market if necessary.
The government has set up a pan-government joint emergency response team led by Koo and joined by officials from the finance, industry, land and oceans ministries, as well as the Bank of Korea (BOK) and other relevant institutions.
The team will monitor developments in the Middle East and their impact on domestic and global financial markets and the broader economy on a 24-hour basis, according to the finance ministry.
Authorities will swiftly implement countermeasures in accordance with contingency plans, in close coordination with relevant agencies, should any unusual signs emerge, it added.
Holding a separate meeting, Lee Eog-weon, chairman of the Financial Services Commission (FSC), instructed officials to swiftly implement market stabilization measures, including a program worth more than 100 trillion won (US$69.11 billion) plus additional support, if necessary, according to his office.
The domestic stock and financial markets will be closed Monday for a substitute holiday.
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