On September 18, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the Emergency Economic Headquarters Meeting and the Ministerial Meeting on Economic Affairs at the Government Complex Sejong.

Deputy Prime Minister Koo noted that despite challenging external conditions, including the conflict in the Middle East, the Korean economy continues to demonstrate solid fundamentals; exports have increased significantly, domestic demand, including consumption, has continued to improve, and global credit rating agencies Moody’s and Fitch have also positively assessed Korea’s robust economic growth.

Deputy Prime Minister Koo went on to note that uncertainty surrounding the situation in the Middle East has recently increased again, as reflected in the sharp rise in global oil prices; against this backdrop, the government will remain vigilant, maintain its emergency response system, and make every effort to ensure stable energy supply and prices. He added that active diplomatic efforts, diversification of import sources, and strategic oil reserve swaps are expected to prevent major disruptions to energy supply for the time being, and that the government will operate a joint monitoring team with the refining industry to review crude oil supply conditions on a daily basis and take necessary measures promptly.

At the meeting, participants discussed the status of the government’s response to the Middle East conflict, the designation of the 10^th round of maximum petroleum product prices, fuel tax policy from October onward, and measures to reduce fuel prices at highway gas stations and EV charging fees during the Chuseok holiday.

After a comprehensive review of recent global oil price developments and the burden on households, the government will announce at 6:00 p.m. on September 18 the 10^th round of maximum petroleum product prices, which will take effect at midnight on September 19. Furthermore, to ease the public’s fuel cost burden amid the recent rise in oil prices, the government will extend the fuel tax cuts, currently scheduled to expire at the end of this month, for an additional two months through the end of November. The 15 percent tax cut on gasoline will remain in place, while the higher 25 percent tax cuts will be maintained on diesel, which is essential for industry and logistics, as well as on butane, widely used to fuel small trucks and other vehicles used for livelihoods.

During the Chuseok holiday from September 24 to 27, the government will also reduce fuel prices at highway gas stations nationwide by KRW 100 per liter from their September 17 levels, with the public sector bearing part of the burden of high fuel prices and helping meet public expectations for service innovation at highway service areas. EV charging fees will also be discounted during daytime hours over the holiday, when supplies of solar and other renewable energy are abundant, so that the benefits of expanded renewable energy deployment can be passed on to the public. Going forward, the government will continue to closely review overall conditions affecting people’s livelihoods, including prices, and implement measures that deliver tangible relief to the public.

Please refer to the attached files.