Bank of France: South Korean government may intervene to ease the impact of the Middle East situation

Economists at the French bank in Paris predict that the South Korean government will introduce support measures to mitigate any economic impact stemming from the conflict in the Middle East. They point out that government departments will provide domestic refinery businesses with access to their oil reserves to limit disruptions to industrial output. These economists say that the South Korean government may also consider increasing fuel tax cuts, noting that the current fuel tax reduction rates for gasoline and diesel are 7% and 10% respectively, and these measures are set to expire at the end of April. The French bank in Paris indicates that the South Korean central bank may "patiently evaluate" this conflict in its policy variables, rather than hastily adjusting policy rates. The French bank in Paris predicts that the central bank will maintain the policy rate at 2.50% unchanged in 2026 and 2027.