Ruling party voices concerns about possible plunge in exports to Middle East amid escalating war

Rep. Han Jeoung-ae, second from left, chair of the National Assembly's policy committee, speaks during a meeting with business groups and ruling party lawmakers at the National Assembly in Seoul, Thursday. Yonhap

The chief policymaker of the ruling Democratic Party of Korea (DPK) on Thursday warned that South Korea's exports to the Middle East could be tanked due to a widening U.S.-Israeli strike on Iran, saying that measures are being prepared to cope with a longer-than-expected geopolitical crisis in the region.

Rep. Han Jeoung-ae, chair of the National Assembly's policy committee, made the remarks at a meeting with DPK lawmakers from relevant parliamentary committees, noting that the escalating conflict could affect South Korean exports to major Middle Eastern countries, which reached about 200 trillion won ($136.7 billion) last year.

"We cannot ignore the possibility that projects in the Middle East worth about 100 trillion won, which our companies have developed as future growth engines, including smart cities, nuclear power plants and artificial intelligence data centers, could be delayed or even scrapped," she said.

Han added that the government is preparing a 100 trillion-won market stabilization program amid mounting geopolitical concerns triggered by U.S.-Israel attacks on Iran last week.

The meeting was attended by DPK lawmakers from the National Assembly's foreign affairs, industry and finance committees, as well as officials from business groups, such as the Korea Enterprises Federation.