South Korea steps up economic security measures amid Hormuz Strait crisis

South Korea’s Minister of Economy and Finance Koo Yun-cheol has said that the country will mobilise all available economic policy tools, including a possible supplementary budget, in response to economic uncertainties stemming from an ongoing Middle East crisis.

He said an emergency economic response system will also be activated, Caliber.Az reports via South Korean media.

Financial markets showed heightened volatility, with the Korean won falling sharply against the U.S. dollar and domestic fuel prices spiking following U.S.-Israeli strikes on Iran and Tehran's retaliatory attacks in the region.

"The government will push sufficient support measures, including a supplementary budget if necessary, and utilize all available policy tools to minimize the impact of the Middle East situation on livelihoods, the economy and industries," Koo Yun-cheol said while presiding over a meeting of economy-related ministers.

As part of the response, the government plans to introduce a temporary cap on domestic fuel prices this week.

Authorities are also preparing additional measures, including a ban on hoarding, and price gouging of petroleum products and fuel-linked subsidies for diesel used by freight trucks, buses and taxis.

The minister said the government would adopt a zero-tolerance stance toward potential collusion by oil refiners amidst possible disruptions of shipping through the Strait of Hormuz.

"We will prevent hoarding and refusal to sell by oil refiners and gas stations by introducing a public notice banning stockpiling and speculative practices involving petroleum products," Koo said.

The strategic waterway has seen intense conflict since February 28 after U.S.–Israeli strikes on Iran and retaliatory actions by Tehran, leading to a de facto closure of the strait to most commercial traffic. Shipping disruptions have persisted for days, with hundreds of vessels stranded outside the Gulf.

The U.S. military reported destroying Iranian mine‑laying vessels near the strait amid accusations that Iran has been laying sea mines, prompting strong warnings from President Donald Trump about severe consequences if mines are not removed.

By Khagan Isayev