South Korea's Lee: more active response needed on energy situation

South Korea plans to respond more vigorously to the energy supply situation stemming from the war in Iran and may consider emergency fiscal measures, President Lee Jae Myung said on Tuesday.



Lee said the current crisis gripping the world could be an opportunity for South Korea to transition to a more sustainable energy policy, including a swifter push to increase the use of renewables.



"Given our high external dependence and the large share of imports for energy, we need an ever more thorough and fine-tuned energy response," he said during a cabinet meeting, while calling for daily monitoring and preemptive policy responses.



Lee said the constitution allows the government to deploy emergency fiscal orders in a crisis situation.



"I want to stress we need to respond swiftly and boldly to the maximum degree," he said.



The South Korean government has put a cap on fuel prices and restricted the export of naphtha following the disruption of supplies from the Middle East, from which it sources 70% of its oil.



The government is also readying an extra budget to cushion the blow on consumers and industries and plans additional fiscal spending in April once the budget proposal is approved by Parliament.