On September 9, the Blue House stated it will quickly proceed with the necessary procedures to implement a price cap on oil based on the Oil Business Act, in response to surging oil prices driven by instability in the Middle East. In a briefing following an emergency economic meeting led by President Lee Jae-myung, Policy Chief Kim Yong-beom discussed measures to prevent abnormal price setting for petroleum products and ensure price predictability by discussing specific implementation plans for the cap.

Kim emphasized that the government is particularly focused on the asymmetry in which oil companies raise prices rapidly but lower them gradually. The price cap will be set biweekly and will fluctuate depending on the rate of increase in oil prices. Additionally, President Lee has directed broader considerations on measures to alleviate the economic burden on stakeholders, including potentially expanding the reduction of fuel taxes and providing direct support to fuel consumers, although he noted that any personal assistance program would require further discussion due to funding and timing challenges.

Regarding market volatility, Kim mentioned that there is a growing concern over the prolonged Middle Eastern situation, leading to a significant divergence in domestic economic fundamentals. He assured that the government is carefully assessing the impacts of oil price shocks on industries and the economy, determining that it has adequate response capabilities. Furthermore, he indicated that market stabilization measures, including a fund of 100 trillion won or more, would be implemented promptly depending on market conditions, with a readiness to devise additional measures if necessary. Kim also acknowledged that serious consideration is warranted for the possibility of a supplementary budget if further responses are needed.