Mucahithan Avcioglu
15 May 2026•Update: 15 May 2026
South Korea is increasingly feeling the impact of the prolonged Middle East crisis, with rising consumer prices weighing on the real economy and livelihoods despite strong exports, Finance Minister Koo Yun-cheol said Friday, according to Yonhap News Agency.
Koo made the remarks during a meeting of economy-related ministers in Seoul on measures to address the economic fallout from the Middle East crisis, according to the Finance Ministry.
“While South Korea has shown strong resilience against crises by posting record exports, current account surpluses and stock market indexes, the prolonged war has started to have a visible impact on the real economy and people’s livelihoods,” Koo was quoted as saying.
He said the government aims to minimize the burden on households caused by the crisis while closely monitoring domestic and global developments.
Koo also thanked local gas stations for cooperating with the government’s fuel price ceiling scheme, saying prices remain below the cap.
The remarks came as South Korean stocks suffered a sharp selloff Friday, with the benchmark KOSPI falling more than 6% and triggering a sell-side sidecar after touching an all-time high earlier in the session.
The KOSPI fell 488.23 points, or 6.12%, to close at 7,493.18, while the smaller KOSDAQ dropped 61.27 points, or 5.14%, to 1,129.82.
Koo said the government is preparing an economic growth strategy for the second half of 2026 focused on strengthening economic security and easing polarization, while drawing lessons from the Middle East war.
He said authorities would also closely assess shifts in the global economy, including developments in the semiconductor sector.
The government is expected to unveil its second-half growth strategy at the end of June, according to the ministry.
Koo also chaired a separate meeting of real estate-related ministers, saying the government would take all available measures to stabilize the property market.
“A prompt supply of housing is more critical than anything else,” he said, adding that authorities would work to accelerate housing supply and crack down on unfair practices in the real estate market.
