On April 10, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired an Emergency Economic Response Headquarters Meeting, combined with a Ministerial Meeting on Economic Affairs at the Government Complex-Seoul. At the meeting, participants discussed “Review of Response Measures to the Middle East Conflict,” “Support Measures for Public Contracts Related to the Middle East Conflict,” “Industry-specific Impacts of the Middle East Conflict,” “Measures to Improve the Management Framework for Virtual Asset Holdings in the Public Sector,” and “Measures to Enhance the Effectiveness of the Information Security and Personal Information Protection Management System Certification.”

Key messages from DPM Koo’s remarks are as follows:

Despite the impact of the Middle East conflict, the Korean economy has maintained relatively solid fundamentals. The current account recorded a record-high surplus in February. In March, both exports and the trade balance also reached all-time highs.

The Middle East conflict has reached a critical turning point, with global oil prices and financial markets showing some signs of stabilization following the ceasefire agreement between the United States and Iran. However, significant uncertainty remains regarding the course of future negotiations, and supply chain disruptions and their impacts are still ongoing.

Efforts will continue to remain vigilant and respond thoroughly to the situation. Supply and demand conditions, price trends of key items, and industry-specific impacts will be closely monitored, while difficulties faced by businesses arising from supply chain instability will be promptly addressed.

[Review of Response Measures to the Middle East Conflict]

[Support Measures for Public Contracts Related to the Middle East Conflict]

[Industry-specific Impacts of the Middle East Conflict]

-          Above all, the government will closely engage with shipping companies and relevant countries to ensure the swift passage of Korean vessels through the Strait of Hormuz.

Seven basic petrochemical feedstocks have been designated as critical items under the Framework Act on Supply Chain Stabilization Support for Economic Security (April 8), and feedstocks such as naphtha are being given priority supply for healthcare and essential consumer goods.

Thorough preparations are also underway for the swift execution of the supplementary budget.

-          In addition, as part of support measures for companies facing difficulties in fulfilling public contracts, where adjustments to contract prices are required due to sharp increases in raw material costs, such adjustments – previously in principle permitted only after 90 days from the date of contract conclusion – will now be allowed within 90 days as well.

In cases where contract performance is delayed due to disruptions in raw material supply and demand, delivery deadlines will be extended and delay penalties will not be imposed.

[Measures to Improve the Management Framework for Virtual Asset Holdings in the Public Sector]

[Measures to Enhance the Effectiveness of the Information Security and Personal Information Protection Management System Certification]

-          First, a systematic management framework will be established for virtual assets held by the public sector, including the central government, public institutions, and local governments.

Each institution will be required to establish or designate a dedicated organization and personnel responsible for managing the virtual assets they hold.

Guidelines covering compliance requirements at each stage – from acquisition and custody to incident response – will be formulated and applied across the entire public sector. 

Furthermore, in preparation for a potential increase in government holdings of virtual assets, measures will be put in place to include virtual assets within national property and manage them systemically.

-          In order to ensure that corporate data, including personal information, is securely protected from hacking and other cyber threats, management and certification requirements for companies holding such information will also be strengthened.

For large-scale personal data processors with significant impact on the public, personal information protection certification will be made mandatory, and certification standards will be strengthened.

With regard to companies responsible for incidents, the causes of such incidents and the status of follow-up measures will be subject to intensive review. Post-certification management will also be enhanced, including the revocation of certification for companies responsible for serious data breaches.

Please refer to the attached files.