South Korea's Ministry of Economy and Finance reported on Deputy Prime Minister and Minister Koo Yoon-cheol’s meeting with the Seoul-based ambassadors of the six Gulf Cooperation Council (GCC) member states to assess the economic impact of the Middle East conflict and discuss cooperation to manage global economic security and supply risks. The talks focused on rising volatility in international oil prices and financial markets, and the risk that heightened tensions in the Strait of Hormuz, which carries around 25% to 30% of global crude oil and about 20% of LNG, could disrupt energy supply, supply chains, inflation and global growth. Koo highlighted South Korea’s exposure, with around 70% of its crude oil imported from Middle Eastern countries and more than 95% of that volume transiting the Strait, and asked GCC partners including Saudi Arabia and Qatar to ensure stable supplies of crude oil, LNG and key inputs such as naphtha and urea; the ambassadors indicated South Korea is a top priority and committed to close coordination on stable supply, alongside shared emphasis on freedom of navigation and the safety of Korean vessels and crews. The ministry also outlined Korea’s domestic response measures, including a maximum price system for petroleum products, fuel tax cuts, an additional KRW 4 trillion expansion of policy financing for affected firms and plans to swiftly execute a KRW 26 trillion supplementary budget, while agreeing to continue work on longer-term cooperation spanning infrastructure, advanced industries, AI and defence.

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