South Korea Shaken by Iran Oil Shock: Government Prepares for Worst-Case Scenario

• South Korea's Prime Minister, Kim Min-sok, declares preparation for a "worst-case scenario" due to West Asia conflict.
• An Emergency Economic Task Force is established, meeting twice weekly with five groups focusing on energy, macroeconomics, financial markets, citizen welfare, and international situation.
• South Korea is highly vulnerable, importing 70% of crude oil and 20% of LNG from West Asia; Strait of Hormuz closure by Iran caused global oil price surge.
• Government imposes fuel price caps (first in 30 years) for up to 8% annual relief, implements 5-day rotation for government vehicles, and urges public to conserve energy.
• Focus shifts to coal and nuclear energy, removing 80% operational limit on coal and increasing nuclear plant utilization to over 80%; a 100 trillion won Financial Market Stabilization Fund is also set up.