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South Korea's Finance Minister Koo Yun-cheol has sought to calm jitters over the Middle East conflict, declaring that the economy retains "solid fundamentals" even as the crisis enters its third month. Speaking at various meetings over the past week, Koo pointed to robust trade figures and resilient financial institutions, while vowing continued vigilance in the face of rising oil prices and market volatility.

Coverage Comparison

Yonhap News, South Korea's leading wire service, reported on Koo's remarks across three separate occasions between late April and early May. In each instance, the minister struck a cautiously optimistic tone, acknowledging the challenges posed by the Middle East standoff but emphasizing the country's capacity to withstand external shocks. The reports consistently highlighted Koo's confidence in the financial system and the government's proactive policy response, while also noting the persistent uncertainties hanging over the global economy.

Key Claims

According to Yonhap, Koo told a macroeconomic policy meeting on April 30 that stress tests of the financial sector demonstrated that institutions maintain sufficient capacity to respond even in the event of a crisis involving key variables such as oil prices and exchange rates. He also said volatility in financial and foreign exchange markets, including government bond yields and the won-dollar exchange rate, continues amid the prolonged conflict.

On May 6, while attending international meetings in Samarkand, Uzbekistan, Koo pointed to the stock market's resilience, noting that the benchmark Korea Composite Stock Price Index (KOSPI) hit a record high, surpassing the 7,000 mark for the first time ever. He attributed the gains to policy efforts and said the market appears to be evaluating positively the government's response to the situation surrounding Iran. Consumer prices, he added, rose 2.6 percent in April from a year earlier, driven primarily by higher fuel costs linked to the conflict, though price stabilization measures—including a fuel price cap and a temporary fuel tax cut—reduced overall inflation by 1.2 percentage points.

At a meeting of economy-related ministers on May 8, Koo cited South Korea's largest-ever monthly current account surplus in March, totaling US$37.33 billion, and exports exceeding $80 billion for the second consecutive month in April as evidence of the economy's solid fundamentals. He acknowledged that economic burdens are increasing amid continued rises in oil prices and supply chain disruptions, and he announced that the government froze price ceilings on fuel products for the third consecutive time, maintaining the current pricing cap for two more weeks.

Perspectives

Koo's remarks reflect a government perspective focused on reassuring markets and the public amid external shocks. He emphasized the economy's resilience while acknowledging the risks, particularly from oil prices and market volatility. The minister also framed South Korea's policy response as effective, noting that both the domestic market and the international community view the country as responding more effectively than others to inflationary pressures stemming from the Middle East crisis. However, Yonhap's reports also capture a note of caution: Koo warned that the conflict poses downside risks and pledged to "firmly hold onto the helm of the economy until all uncertainties have subsided." Authorities, he said, will maintain around-the-clock monitoring of financial and foreign exchange markets and take stabilization measures in a timely manner if necessary.