President labels Korea's energy crisis as 'war-like situation' with no end in sight

President Lee Jae Myung gives a policy speech on the supplementary budget at the National Assembly, Thursday. Yonhap

President Lee Jae Myung described people’s livelihoods as being in a “war-like situation” amid a looming energy crisis stemming from the conflict in the Middle East, saying that the crisis shows no clear signs of ending.

To help mitigate the risks on the Korean economy, the president called for bipartisan support for swift approval of a 26.2 trillion won ($17.24 billion) supplementary budget.

Lee’s evaluation of the situation came in his Thursday budget speech at the National Assembly in Seoul.

“The government recognizes this crisis as an economic ‘war-like situation’ and is mobilizing all available resources to overcome the challenges at hand,” the president said.

“It is not a passing shower — it is a massive storm of uncertain duration," he said. "Even if the war were to end tomorrow, it will take considerable time to restore damaged energy infrastructure in the Middle East and return to supply stability.”

He said the country must prepare a more thorough and resilient response, calling the budget a “breakwater” protecting people from the waves of the crisis, as well as a foundation for Korea’s next leap forward.

Citing past crises, he noted that the longer it took to respond proactively to unexpected external shocks, the more the damage grew exponentially for both the economy and the people.

“In the face of this national crisis, the government and the National Assembly, the ruling and opposition parties must join hands with a shared commitment to our people and our country," he said. “And I urge bipartisan cooperation to ensure the swift passage of this budget.”

The president’s remarks came two days after the Cabinet endorsed the 26.2 trillion won supplementary budget, amid the extended U.S.-Israel war with Iran since Feb. 28.

Lee outlined details of the extra budget, which include 4.8 trillion won in cash assistance to about 35.8 million people, covering the bottom 70 percent of income earners.

Other measures included 5 trillion won to support the fuel price cap and address naphtha supply risks and 1.9 trillion won for youth startups and job support.

He stressed that the government will take the lead to ensure the budget produces effective, concrete results.

“The government, including myself and all public officials, will take the lead with extraordinary determination,” the president said.

He also underscored a “zero-tolerance policy” against unfair practices such as collusion, hoarding and profiteering that exploit this crisis.

He asked citizens to “actively participate in energy-saving practices in daily life, such as using public transportation and conserving electricity.”

He said the budget is “debt-free” with no issuance of government bonds, addressing concerns over a growing national debt under his expansionary fiscal policy.

“This budget is designed to make bold investments where necessary due to the Middle East war, while ensuring that the burden is not passed on to our people or the economy," he said.

The budget requires approval from the National Assembly to take effect. The ruling Democratic Party of Korea, which holds a majority, and opposition parties are expected to pass it in a plenary session on April 10.

The Middle East conflict is feared to worsen Korea’s economic slowdown, as the country is heavily reliant on crude oil imports from the region, with related products affecting both manufacturing and daily life.

The government forecasts that the additional expenditure will boost economic growth by 0.2 percentage points without triggering inflation.

It was Lee’s third speech at the National Assembly, following two others he delivered last year in June and November.