South Korea President Lee Jae Myung Calls Inflation Most Urgent Policy Challenge

President Lee Jae Myung said Friday that inflation is the government's most urgent policy challenge and urged officials to devise extraordinary measures to stabilize prices and ease the burden on households. Lee spoke during a meeting with senior presidential aides at Cheong Wa Dae in Seoul.

He noted that it will take a long time before global energy supply chains return to normal and the Strait of Hormuz is fully reopened, despite a ceasefire deal between the United States and Iran aimed at ending the monthslong war in the Middle East.

"The high oil prices, inflation and heightened foreign exchange rate volatility triggered by the war have done significant damage to our economy," Lee said. "The most urgent task right now is prices. Both the presidential office and the government must mobilize all available means to stabilize prices and restore the people's livelihoods," he added.

1 percent in May from a year earlier, marking the fastest growth in 26 months amid the Middle East conflict. Lee said the pace of price growth has been managed through the oil price cap system and other preemptive responses, but he called for "extraordinary measures" to normalize petroleum product prices and ensure the stable supply and prices of key items such as farm products and meat.

Noting a recent increase in heat-related illnesses amid a heat wave, Lee instructed officials to review the government's relevant manual and ensure the effective operation of cooling shelters.

With beaches nationwide set to open next week, Lee also called for a thorough review of safety measures at high-risk swimming and recreational areas. Lee urged authorities to take preemptive steps against price gouging that often emerges during the peak summer holiday season.