South Korea is maintaining emergency economic measures as uncertainty deepens following the collapse of initial ceasefire talks between the U.S. and Iran, officials said April 12.
At an emergency economic meeting led by presidential policy chief Kim Yong-beom, officials agreed that risks to the economy remain high despite ongoing diplomatic efforts, according to a presidential spokesperson.
While further negotiations between Washington and Tehran remain possible, officials said that even if a ceasefire or formal end to hostilities is reached, it could take time for global supply chains and Middle East energy production to normalize.
“The government will maintain its emergency response system until a clear declaration of an end to the war is made,” the spokesperson said, adding that high-level emergency meetings will continue.
Authorities plan to maintain a supply-chain monitoring system to track key goods and signal potential shortages, while preparing measures to prevent hoarding and stabilize supply.
Oil prices are expected to remain elevated, prompting efforts to secure supplies and contain costs. The government will also continue energy-saving measures, including adjusted work schedules in the public sector and voluntary participation programs for private companies.
Officials said transportation incentives tied to a public transit program will be rolled out quickly, including a 30-percentage-point increase in reimbursement rates for off-peak commuting and a 50% reduction in the minimum spending threshold for fixed rebates.
The meeting also addressed efforts to restore naphtha supply to prewar levels of about 2.3 million short tons.
The measures follow the breakdown of initial ceasefire talks held in Islamabad, Pakistan, which ended without agreement. U.S. officials cited the lack of a clear commitment from Iran on nuclear concessions.
Although further talks could resume, it remains unclear whether a deal can be reached within the current two-week ceasefire window, leaving policymakers bracing for prolonged disruption.
