Industry Minister Kim Jung-kwan said the end of the US-Iran war and stabilization of fuel prices are preconditions for lifting domestic fuel price ceilings. Speaking at a press briefing on economy issues in Sejong on April 27, he outlined three conditions. The government froze price ceilings again on Thursday.
Industry Minister Kim Jung-kwan stated in Sejong on April 27 that three conditions must be met to end the price cap system: the end of the US-Iran conflict, normalization of crude deliveries via the reopened Strait of Hormuz, and consensus from talks between oil refineries and gas stations.
"But the government aims to swiftly end the price cap scheme once the war is over," he stressed. The remarks responded to Prime Minister Kim Min-seok's statement last week that Seoul would review whether to maintain the ceilings. Kim noted it is too early for termination discussions, as the war's end and its long-term impact on global fuel prices remain uncertain.
"I think the system has created an appropriate balance (in the fuel market) both from the perspective of gas stations and consumers," he said, adding that local gasoline prices rose only around 10 percent from pre-war levels, compared to 30-40 percent in the US. The Ministry of Trade, Industry and Resources froze ceilings for the second time on Thursday at 1,934 won ($1.30), 1,923 won, and 1,530 won per liter for gasoline, diesel, and kerosene, respectively. The temporary system, introduced in mid-March, sets maximum prices every two weeks.
During the briefing, Kim also addressed the Samsung Electronics labor standoff, urging a "wise" resolution considering suppliers, subcontractors, and 4 million shareholders alongside workers. On Coupang's data leak probe, he said the government is managing the issue to avoid impacting South Korea-US trade and security, viewing it as serious unlike the US side.
