Lee Jae-myung: South Korean economy has entered wartime mode, urging the parliament to pass supplementary budget bill

South Korean President Lee Jae-myung said that due to the war in Iran, the South Korean economy has entered a wartime state.

According to reports from both Yonhap News Agency and Agence France-Presse, when Lee Jae Myung delivered his policy speech to the National Assembly on Thursday (April 2nd), he stated regarding the impact of the Middle East war: "Our government is putting the economy on a wartime footing and is doing its utmost to overcome the crisis."

After the United States and Israel launched a war against Iran, Iran imposed a blockade on the Strait of Hormuz, a key oil transportation route in the Persian Gulf, resulting in a shortage of oil supply and a subsequent sharp increase in global oil prices.

Approximately 70% of South Korea's crude oil imports rely on the Middle East. This war poses risks to South Korea's economic growth and inflation.

Lee Jae-myung said in his speech: "The current crisis is not a fleeting shower, but more like a huge and uncertain storm that may last for an indefinite period."

He urged the members of Congress to quickly pass the supplementary budget proposal put forward by the government.

The supplementary budget proposal of the South Korean government amounts to 26.2 trillion won. Lee Jae-myung emphasized that this round of supplementary budget does not require the issuance of additional national debt. Instead, it will be funded by the excess tax revenue from the bull market in the stock market and the high demand for semiconductors, as well as by allocating funds from the budget.

Lee Jae-myung said that the disruption in oil supply has led to a sharp increase in gasoline and diesel prices, and the supply of raw materials such as naphtha and urea has become tight. This has widely affected people's livelihood and the economy, so all government departments have activated the "Emergency Economic Response System" and taken various countermeasures.

According to Lee Jae-myung, the government's measures include implementing an oil price cap, strengthening the management of naphtha and urea supplies, providing greater financial support to affected enterprises, and making every effort to ensure alternative supply sources.