South Korea Extends Fuel Price Caps for Third Time

Finance Minister Koo Yun-cheol said Monday the temporary price caps on fuel products will remain in place for some time as the government monitors instability in the Middle East. The government currently reviews fuel price ceilings every two weeks under a price cap system introduced in mid-March to curb inflation driven by surging global oil prices. -Israeli strikes on Iran in late February.

"We plan to maintain the measure for some time until the situation in the Middle East stabilizes," Koo told reporters at the government complex in the central city of Sejong on May 11, 2026. Under the latest adjustment announced Thursday, the government froze fuel price ceilings for the third consecutive review period.

Asked whether authorities planned to keep the system until the end of any conflict, Koo said they would continue monitoring global oil market conditions.

"We need to watch oil price trends," he said. Koo added that authorities would maintain the caps while the regional situation remains unsettled. 6 percent in April from a year earlier, mainly due to higher fuel costs linked to the Middle East conflict.

Koo said the government has responded more effectively than many other countries to the resulting inflationary pressure. "Compared with other major countries, inflation appears to have been managed relatively well," he said. Despite those challenges, Koo expected the South Korean economy to grow more than 2 percent in 2026.

He cited stronger-than-expected first-quarter gross domestic product growth and upgraded forecasts from global investment banks. 7 percent in the first quarter. 2 percent.

9 percent growth. Koo noted that how far beyond the 2 percent threshold annual growth would reach depends on factors including the strength of the semiconductor upcycle and effects from the Middle East conflict. A detailed forecast will be announced next month.

Koo also addressed the recent labor-management dispute at Samsung Electronics Co. over performance-based pay. Unionized workers earlier announced plans to stage a general strike starting May 21. "We should not let the discord between labor and management cause us to squander this opportunity, when the world is racing to secure semiconductors from South Korea," he said.

U.S. Treasury Secretary Scott Bessent, Koo said no separate meetings have been scheduled.