Deputy Prime Minister Calls Emergency Meeting: Middle East Conflict Rattles Global Economy

Choi Sang Mok, the Deputy Prime Minister and Minister of Economy and Finance stated on the 23rd that “the uncertainty of the global political and economic environment has increased more than ever due to the Israel-Iran situation.” Choi made this statement at the 2nd external Economic Advisory Council meeting, which Middle Eastern and energy experts attended at the government complex in Seoul on the 23rd. Professor Park Hyun attended the meeting of Sogang University, the head of the Korea Energy Economics Institute, Jung Jun Hwan, director of the Middle East Center at the Asan Institute for Policy Studies, Jang Ji Hyang, and Professor Sung Il Kwang of Korea University.

Choi emphasized the need to prepare to respond immediately to the impact of Middle Eastern uncertainty on our economy after mentioning the uncertainty of the global political and economic environment. Experts also diagnosed that the Middle East situation is acting as a very large uncertainty factor for the global economy as the direct conflict between Israel and Iran unfolds in a situation where the conflict between Israel and Hamas continues and calls for close monitoring of trends and impact. Choi proposed continuous communication with experts, reiterating that the government will thoroughly monitor the progress of the Middle East situation and market movements, as pointed out by experts, to ensure that our economy is not adversely affected.

This external economic advisory council meeting aims to search for Korea’s strategic response to the rapidly increasing global uncertainty. It is an ad hoc body introduced this year to listen to opinions from domestic and foreign experts and reflect them in policy. To operate a flexible advisory meeting, it was decided to omit the appointment of advisors and the enactment of supporting legislation, eliminate divisions within the council, and remove barriers within the advisory meeting. It was decided to hold regular meetings quarterly and hold advisory meetings as necessary when important international issues occur. In addition, a list of domestic and foreign experts in the field of foreign economy will be constantly composed and managed. At the time of the meeting, experts optimized for the discussion topic will be composed, 2-3 topics will be selected for each meeting, and a total of 5-6 experts will be invited to continue the discussion. In addition, it plans to support advisory meeting materials on global issues by strengthening the think tank outreach of the host country of the Ministry of Economy and Finance and improving the analysis capabilities of global issues in foreign countries.