As oil price volatility grows due to the war between the United States and Iran, President Lee Jae-myung has ordered the continuation of the maximum oil price system and the maximum retention of policy measures such as fuel tax cuts.

President Lee, who is currently visiting three South American countries including San Francisco, USA, and Brazil, presided over a video conference with senior secretaries and advisors at 9:00 PM on the 26th (local time) in the Brazilian capital of Brasília.

During the meeting, President Lee stated, "As the situation in the Middle East becomes unstable again, international oil prices are fluctuating, and oil price volatility is likely to continue for the time being." He added, "I ask that the maximum oil price system be maintained until oil price instability is completely resolved, and that policy measures such as fuel tax cuts be kept in place to the maximum extent possible."

He also emphasized, "If the situation worsens, additional measures to alleviate the hardships of people's livelihoods should be actively reviewed," and "measures should also be pursued to ease the burden on groups heavily dependent on diesel, such as truck and construction machinery drivers, farmers, fishermen, and mobile workers."

He also mentioned strengthening the overall management of living prices.

President Lee said, "The rainy season is ending and the vacation season is beginning, and in times like these, it is important to closely look into the lives of struggling citizens."

He promised, "Residents of jjokbangchon (impoverished guesthouses) enduring extreme heat without proper air conditioning, ordinary people who are worried about side dishes rather than vacations due to soaring prices, and young people sweating at this very moment to break through narrow employment doors—myself and the government will sincerely do our utmost at every moment so that all citizens can have hope."

Regarding the economic growth rate, he diagnosed, "Following the first quarter, the second-quarter growth rate recorded 3.7 percent, which is close to 4 percent, and domestic demand, facilities, and investment are showing a steady recovery centered around exports."

However, he pointed out, "Behind these numbers lie dark shadows such as sluggish youth employment and high loan delinquency rates among small and medium-sized enterprises. If the fruits of growth are concentrated only in certain classes and sectors, economic imbalance will worsen, and eventually the economy that has managed to revive will inevitably cool down again."

He also explained, "Just as a room stays warm for a long time when both the upper and lower parts are evenly heated, for sustainable economic development, the government must work to spread the warmth of growth widely." He added, "We must accelerate the implementation of policies encompassing fiscal, tax, and financial measures so that abundant liquidity can flow to alley commercial districts and small and medium-sized enterprises."

President Lee also encouraged relevant ministries to "swiftly and seamlessly execute related measures prepared as economic growth strategies for the second half of the year."
 
(Photo: Yonhap News)