05.03.2026 09:21
The war in the Middle East shaking global energy and financial markets also affects the South Korean economy, while President Lee Jae Myung issued a directive to diversify oil supply following a sharp decline in the stock market and the depreciation of the won, along with a $69 billion emergency market stabilization package.
As the escalating war in the Middle East shakes the global economy, alarm bells have also rung in South Korea. President Lee Jae Myung instructed government agencies to take urgent measures due to the threat of conflicts to oil supply and the potential for severe fluctuations in the markets.
GLOBAL WAR HITS MARKETS HARD On the sixth day of the war, the test of the Minuteman III intercontinental ballistic missile from the Vandenberg Space Force Base in California, USA, further heightened global tensions. Although Washington stated that the test was pre-planned, the military move exacerbated the unease in world markets amid already rising tensions. As conflicts in the Middle East escalate, concerns about oil supply have increased, and energy prices have rapidly risen. Analysts warn that Iran's potential retaliation and a possible disruption in the Strait of Hormuz could seriously impact global oil flows. About one-fifth of the world's oil supply passes through this narrow passage.
SOUTH KOREA'S STOCK MARKET CRASHED The economic impact of the war has been sharply felt in Asian markets. The decline in the South Korean stock market has been reported by officials to be even more severe than the market reaction following the September 11 attacks. The financial turbulence has also reflected in the currency market. The Korean won briefly fell to one of its lowest levels against the US dollar since the global financial crisis. For South Korea, which is heavily dependent on energy imports, the rise in oil prices is seen as a serious risk. More than 70% of the country's crude oil imports come from the Middle East.
President Lee Jae Myung $69 BILLION EMERGENCY ECONOMIC SHIELD Returning to the country by cutting short his overseas program, President Lee Jae Myung instructed the government to prepare a massive economic package to protect the markets. In this context, an emergency market stability mechanism of approximately $69 billion will be activated. The package aims to control the severe fluctuations in the stock market and the Korean won and to restore confidence in the financial system. Economists state that this step is critical, especially to curb panic selling by foreign investors.
NEW STRATEGY AGAINST OIL CRISIS The Seoul administration is taking urgent steps not only for financial markets but also for energy security. President Lee instructed government agencies to rapidly diversify oil import sources. However, experts emphasize that this will not be easy. Due to the uncertainty created by the war, many countries in Asia are simultaneously trying to find new oil supply sources. Rising shipping costs and insurance premiums are also making energy imports more expensive. Therefore, Lee also stated that urgent financial support should be provided to Korean shipping and logistics companies operating in the region.
WAVE EFFECT IN THE GLOBAL ECONOMY Experts indicate that if the war prolongs, not only oil prices but also global inflation and trade chains could suffer severe blows. It is stated that the increase in energy costs could rapidly raise production and logistics costs for South Korea, which has an export-oriented economy. The Seoul administration is preparing to announce new economic measures in the coming days to calm the markets and secure energy supply.