Ministerial Meeting to Deal with Fallout after US-Iran Conflict

Government Forms Six Task Forces to Prepare for

Possible Fallout

Deputy Prime Minister Hong Nam-ki called a ministerial meeting on January 10, 2020 to discuss ways to effectively respond to the potential risks to the Korean economy, which the conflicts between the US and Iran might pose.

Following is a summary of DPM Hong’s keynote address.

The meeting was called to look into possible risks and make government plans ready for them.  The plans cover the safety of the Korean people in the region, financial markets, international oil prices and the real economy. 

Current situation

Volatility in the financial and oil markets has eased after their fluctuation on the Iranian missile attack launched on January 8.  Korean people in the region have been safe, and we have had little effect on the real economy as oil supplies and trade stay stable.  The country’s construction projects underway in the Middle East and shipments passing through the Strait of Hormuz are not affected, either. 

However, there are always chances of markets turning volatile in line with how the situation will develop.  The government will be fully prepared for potential risks.

How the government will respond

1) Work to ensure the safety of the Korean people in the region and reduce the impact of the conflict on the real economy

2) Form six task forces in the government to work on the risks to the financial market, international oil market, real economy, overseas construction and international shipments

3) Make the existing contingency plans ready, including the release of the country’s oil reserves, as well as work on other emergency plans

Please refer to the attached pdf