South Korea enters crisis mode, sets up an inter-ministerial task force, and allocates additional funding to prepare for the worst-case scenario in the Middle East.

South Korea is stepping up efforts to develop emergency plans to respond to the worsening situation in the Middle East. Prime Minister Kim Min-seok warned that, as the conflict could drag on, the government must strengthen its preemptive response system and prepare for the worst-case scenario.

Kim Min-seok said to reporters on Wednesday that, given the situation may become prolonged, it is necessary to further strengthen the inter-ministerial proactive response system, including preparations for the worst case. The government will respond quickly with the utmost urgency, based on the severity of the circumstances.

In addition, Kim Min-seok said the government will form an emergency economic task force led by the prime minister, to operate as a cross-ministry “single team.” Kim Min-seok noted that the task force is tentatively scheduled to hold two meetings per week to coordinate response measures, while the presidential office will also set up a dedicated emergency economic operations room.

Kim Min-seok also urged that the supplementary budget bill be passed as soon as possible, stressing that this “is not a choice but a necessity,” to protect the economy from risk shocks. The move highlights that South Korea is entering crisis-response mode as oil prices surge and supply risks intensify—especially with the Strait of Hormuz nearly shut to most shipping.

The government and the ruling party reached an agreement on Sunday to allocate an additional budget of about 25 trillion won (250k USD). The budget will be funded by tax revenue higher than expected, rather than by issuing new debt, to avoid pushing up bond yields.

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责任编辑：王永生