Macroeconomic and Financial Market Stability Meeting Following US-Iran Conflict
Government to Be Prepared for Possible Emergencies
First Vice Minister of Economy and Finance Kim Yong-beom held a Macroeconomic and Financial Market Stability Meeting on January 7, 2020 to discuss ways to respond to market volatility following the US-Iran conflict.
Following is a summary of First Vice Minister Kim’s keynote address.
Not affected directly
Although volatility increased somewhat in Korea’s financial market due to rising tensions between the US and Iran, it will be temporary with the country’s external soundness being solid. International oil prices have been rising, but the effect on the economy will be limited. As for the oil supply, we do not import from Iran and no supply disruption is expected in the short-term.
The government will stay alert to potential risks to the economy, help the market maintain stability and work for the economy to gain recovery momentum. We will make our contingency plans ready in case of rising volatility, as well as will consider the release of oil reserves if the conflicts last longer than we expect. As of November 2019, we have around 200 million barrels of oil reserves (the government reserves of 96.5 million barrels + private sector stockpiles)
The government will also work on the safety of Korean citizens and companies in the conflict-affected area, such as construction workers dispatched to the Middle East and vessels going around the Strait of Hormuz.
Please refer to the attached pdf