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Deputy Prime Minister Koo Yun-cheol speaks during a ruling party–government meeting on economic responses to the Middle East crisis at the National Assembly in Seoul on Thursday. Photo by Asia Today

March 6 (Asia Today) — South Korea’s government and ruling party said Thursday they are preparing to introduce fuel price caps if needed as oil prices surge following tensions in the Middle East, warning of strict action against price gouging.

Deputy Prime Minister Koo Yun-cheol, who also serves as finance minister, said the government will activate an interagency inspection team to monitor fuel prices at gas stations nationwide.

“We will respond firmly to any attempt to seek economic gain during a national crisis,” Koo said during a policy consultation meeting with ruling party lawmakers at the National Assembly. “If laws are violated, we will take the strongest possible measures under a zero-tolerance principle.”

Rep. Jeong Tae-ho, a senior lawmaker on the National Assembly finance committee, said the inspection team will begin on-site checks at gas stations immediately. The results could determine whether the government introduces price ceilings by fuel type or region.

The government and ruling party also agreed to provide about 20 trillion won ($15 billion) in financing support to small and medium-sized exporters facing disruptions from the Middle East crisis.

Officials said South Korea currently holds strategic crude reserves equivalent to more than 208 days of supply. The government plans to share its phased release schedule with private refiners earlier than usual so companies can prepare supply plans.

Authorities are also reviewing support measures for additional transportation costs incurred as companies diversify crude oil import routes.

Lawmakers said legislation aimed at stabilizing the currency market will also be accelerated. Jeong said three exchange-rate stabilization bills will be reviewed by a National Assembly subcommittee next week, with the goal of passing them in a plenary session on March 19.

A separate bill supporting South Korean investment in the United States is scheduled for final approval in a special committee vote on Sunday.

Meanwhile, the government said it is continuing efforts to protect South Korean nationals in the Middle East by identifying the status of corporate staff, sailors and travelers currently staying in the region.

— Reported by Asia Today; translated by UPI