Middle East risk spreading, Ministry of Finance and Economics: "Oil prices and financial market impact are limited"
The Planning and Finance Ministry of South Korea assessed on the 2nd that the Middle East risks triggered by the attacks by the United States and Israel on Iran currently have limited impact on international oil prices and financial markets. Although escalating military tensions with Iran led to a rise in international oil prices, the increase has narrowed compared to the early trading hours. The stock and bond markets have also not experienced significant shocks.
First Deputy Minister Lee Yi-yuan emphasized at a briefing after an emergency meeting of relevant departments chaired by the Prime Minister that, as risk aversion sentiment intensifies, the US dollar and Swiss franc are strengthening noticeably, putting Asian currencies under pressure. Asian stock markets are showing volatility, with the Nikkei down, while Chinese indices like the Shanghai Composite remain on the rise.
European stock markets have seen increased declines, and uncertainty continues. In response, the Planning and Finance Ministry has decided to hold a joint inspection meeting with relevant departments before the domestic stock market opens on the 3rd to closely monitor the situation. Additionally, a 24-hour monitoring system centered on a joint emergency team will be launched to track the impact on financial markets and the real economy.
Regarding concerns about damage to domestic small and medium-sized enterprises, the ministry is working with the Small and Medium Risk Enterprises Department to process loss claims and will develop targeted support plans through the Middle East situation emergency contact network. In logistics, major shipping companies have been advised to proceed cautiously in the Middle East waters, and it has been confirmed that no Korean ships are currently passing through the Strait of Hormuz.
The Planning and Finance Ministry stated that the duration of such external risks is difficult to predict, but monitoring will continue, and appropriate measures will be taken immediately if necessary. Given that future developments may trigger fluctuations in financial markets, vigilance is required.