Initial impact of Israel-Palestine war limited: Presidential office

The Ministry of Trade, Industry and Energy is holding an emergency meeting. [Courtesy of Ministry of Trade, Industry and Energy]

The South Korean government launched an emergency security assessment after Palestinian militant group Hamas staged a surprise attack on Israel during a major Jewish holiday Saturday, prompting the Israeli military to engage in retaliatory air strikes. The government, while assessing that the impact on Korea is limited as the conflict is still in its early stages, plans to put into operation a contingency plan, if necessary, as uncertainty has increased.

An official from the presidential office said on Monday, “National Security Advisor Cho Tae-yong is continuously receiving reports on the situation in the Middle East and conducting assessments of its effects on our economy and security from various angles.”

Meanwhile, the Ministry of Trade, Industry and Energy held an emergency meeting with the Korea National Oil Corp. and the Korea Gas Corp. on the same day to evaluate the domestic oil and gas supply as well as the impact of oil prices at home and abroad. Initial analysis suggests that there is no disruption to the import of oil and liquefied natural gas (LNG) as the conflict area is distant from key oil and gas import routes such as the Strait of Hormuz. Additionally, it has been confirmed that oil tankers and LNG carriers currently navigating near the Middle East are operating normally. The meeting focused on discussing various scenarios and responses to oil and gas price fluctuations while taking into account previous cases of conflict in the Middle East.

The Ministry of Economy and Finance and financial authorities, including the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea, also held a joint meeting to urgently evaluate the impact on domestic and international financial and foreign exchange markets. They assessed that while the crisis has led to a wide range of fluctuations in international oil prices, the movements in international financial markets have been limited so far.

The agencies, however, diagnosed that there is a high degree of uncertainty regarding the future developments, which could lead to increased volatility in the global financial markets.

According to the Ministry of Foreign Affairs, Korean travelers, including pilgrims to holy sites, are expected to return home via Korean Air flights and other means. Korean Air Lines Co. will send its 218-seat KE958 flight to Tel Aviv after maintenance in Dubai. Flight KE958 is scheduled to depart Tel Aviv at 1:45 p.m. (local time) on Tuesday and arrive at Incheon International Airport at 6:10 a.m. on Wednesday.

LG Electronics Inc. decided to evacuate around 20 employees and their families back home to Korea from its Tel Aviv branch to ensure their safety.