Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Tuesday that the upcoming eighth adjustment to the oil price cap will take into account the recent rise in global crude prices.

Koo made the remarks while briefing the Cabinet on emergency government operations and response measures related to the Middle East war at a Cabinet meeting held Tuesday.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at a Cabinet meeting chaired by President Lee Jae Myung at Cheong Wa Dae on Tuesday. [Yonhap]
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol speaks at a Cabinet meeting chaired by President Lee Jae Myung at Cheong Wa Dae on Tuesday. [Yonhap]

"Brent crude, which had fallen to $71 on July 1, was at $90 on Monday and has come down slightly to the $89 range today," Koo said. "West Texas Intermediate also dropped into the $60 range but is now trading in the $80s."

He added that crude oil and naphtha supplies for July and August were being secured stably, but that additional procurement efforts would be needed beyond September depending on how the war situation develops. He said 90 percent of September's crude oil supply had already been secured.

Since introducing the oil price cap on June 27, the government cut the pump supply price by 150 won per liter for the first time and said it would monitor global crude price trends before deciding whether to end the regime.

However, as international oil prices have resumed their climb amid a deteriorating situation in the Middle East, the government is again reviewing whether to adjust the cap for the eighth time. President Lee Jae Myung said at the meeting that the oil price cap, which had originally been expected to be lowered or scrapped by now, should instead be tightened.

Koo said the government would spare no effort to ease the burden on households even as global oil prices rise.

"Prices for items that people care about most — eggs, mackerel and chicken — are down about 3 percent compared with late June," he said. "We are working to stabilize prices by expanding imports and holding discount events."

On employment, Koo said the number of employed people rose by 63,000 in June, reversing a decline of 40,000 the previous month. He said the government would draw up measures to boost hiring in manufacturing, construction and among young workers, noting that employment in those sectors and youth employment rates remained under pressure.

On youth job programs, he said the K-New Deal Academy — which uses training facilities at large companies — would expand from eight companies this month to 30 next month, and that semiconductor and AI boot camps would grow from 95 universities currently to 108 by September.

"The government will spare no effort to continuously develop and review measures to train 200,000 specialists in semiconductors and AI and create more than 300,000 jobs," Koo said.

On the foreign exchange market, Koo said the government had drawn up a won internationalization roadmap covering both the expansion of won-denominated transactions and risk management. He said the only remaining task on the MSCI roadmap was an offshore won settlement system, and that the government would complete it without delay by the first half of next year to keep South Korea's capital market advancement on schedule.


y2k@heraldcorp.com