South Korea Caps Fuel Prices Amid Middle East Crisis

South Korea, led by President Lee Jae Myung, has announced plans to cap domestic fuel prices as global crude prices surge due to a Middle East conflict. The government aims to mitigate economic burdens by exploring alternative energy sources and ensuring stable domestic energy supplies, amidst financial market volatility.

In a historic move, South Korea plans to cap domestic fuel prices for the first time in almost 30 years, as announced by President Lee Jae Myung on Monday. This decision comes in response to rising global crude prices spurred by the ongoing crisis in the Middle East.

During an emergency meeting, President Lee emphasized South Korea's heavy reliance on global trade and Middle Eastern energy imports. The President pledged swift action, aiming to control petroleum product prices that have surged excessively. Additionally, the country is seeking alternative energy sources beyond the vulnerable Strait of Hormuz.

Policy adviser Kim Yong-beom noted the price cap system is set for rapid implementation, potentially starting this week, with the flexibility to adjust fortnightly. Amid market fluctuations, South Korea remains prepared with substantial oil reserves and potential cooperative purchases to meet consumption needs. Financial strategies are under consideration to address prolonged crisis impacts on South Korea's economy.

(With inputs from agencies.)