President Lee Jae-myung addressed the "oil price cap" system, which has been in operation to respond to the situation in the Middle East, stating, "Should we not be more bold in maintaining the price cap and lowering the maximum price itself?"

During the 27th Cabinet meeting and 12th Emergency Economic Review Meeting held at the Blue House today (the 23rd), President Lee said, "With excess tax revenue expected from sectors like semiconductors, the fiscal burden would not be significant even if we lower fuel taxes, and it would also help expand the consumption capacity of the working class."

President Lee also noted, "There is pressure from inflation, and the prices of petroleum products have risen too much. Given the significant burden of inflation, we must continue to maintain the price cap system for now."

Although international oil prices are showing a relatively stable trend as an end to the conflict between the U.S. and Iran appears to be in sight, his remarks are interpreted as emphasizing that the potential impact on the livelihoods of ordinary citizens should be the primary consideration regarding the continuation of the price cap system.

Koo Yoon-cheol, Deputy Prime Minister and Minister of Finance and Economy, responded, "We will lower the price cap and also review other policy alternatives if necessary."

President Lee emphasized, "Inflation is high and polarization is severe," adding, "Income polarization is severe, and the stock market is also polarized as only large blue-chip stocks are rising significantly. We need to research income support measures."

Regarding the recent issue of the high exchange rate, he asked, "Exports and the current account surplus are at all-time highs, so the exchange rate should naturally be falling. Is the real reason for the continued instability due to the strong dollar and the yen?"

Deputy Prime Minister Koo explained that the rapid rise in the domestic stock market led foreign investors to adjust their portfolios by selling approximately 140 trillion won worth of Korean stocks, which in turn affected the exchange market.

President Lee then asked, "Is this a short-term issue rather than a structural one?" and followed up by asking, "In any case, are you saying that the mid-1,500 won range is too excessive compared to the fundamentals?" to which Deputy Prime Minister Koo replied, "I believe it is excessive. We will take our time to prevent extreme market volatility."

(Photo: Yonhap News)