Republic of Korea (ROK) President Lee Jae Myung said on Thursday the country's economy is now on a "wartime" footing, urging parliament to fast-track a 26.2 trillion won (about 17.4 billion U.S. dollars) supplementary budget to shield households and businesses from surging oil prices triggered by the Middle East conflict.
In an address at the ROK's National Assembly in Seoul, Lee made a direct appeal to lawmakers and urged them to pass a supplementary budget.
Much international attention is focusing on the severe disruption the war is causing to shipping through the Strait of Hormuz -- a vital passageway which typically carries around one-quarter of global seaborne oil trade.
Data from the Korea International Trade Association (KITA) shows that the ROK imports around 70 percent of its oil and 20 percent of its liquefied natural gas from the Middle East, meaning the current situation is now becoming an increasing concern.
"Emergency situations require extraordinary measures. The ROK government has a serious awareness that it is a wartime situation for people's livelihoods and the economy. We are making every effort to overcome the immediate crisis," said Lee.
The proposed budget put forward by Lee focuses on three key areas, namely offsetting rising fuel costs, stabilizing livelihoods, and supporting industries hit by supply chain disruptions.
It also includes direct cash assistance for roughly 70 percent of the population, along with targeted support for businesses struggling with higher energy costs. Refiners and companies affected by price controls are also set to receive financial backing.
"I would like to say that we have designed [the budget] to make bold investments where it is necessary and ensure the burden is not passed on to our people and the economy," said Lee.
The government insists the package will be funded without issuing new debt and will instead rely on stronger-than-expected tax revenues. Lawmakers from both parties have agreed in principle to pass the bill by next week.
ROK declares economic 'wartime' status, pushes 17.4 billion USD crisis budget
