Finance Minister Choo Kyung-ho declared on Tuesday that the ongoing battle between Israel and Palestinian militant group Hamas has caused a heightened level of market instability, and is likely to result in more drastic fluctuations in oil prices. During a meeting with ministry officials to discuss ways to reduce the economic consequences of the conflict, Choo urged close monitoring of both domestic and international financial and foreign exchange markets, as well as the implementation of contingency plans.
The minister also warned of an imminent increase in global oil prices due to the potential disruption of supply and output from the Middle East. South Korea is highly dependent on foreign sources for its energy needs, with two-thirds of its crude oil imports and almost 40 percent of its total gas purchases coming from the region.
Choo concluded his remarks by emphasizing the importance of monitoring the real economy and ramping up efforts to stimulate private spending and investment. He is currently in Morocco to attend the International Monetary Fund and World Bank annual meetings, as well as the G20 gathering of finance ministers and central bank chiefs, where the Israel-Hamas confrontation is expected to be a major topic of discussion.