Ministry of Finance and Economy

First Vice Minister of Finance and Economy Lee Hyoung Il chaired an inter-ministerial vice ministers’ meeting on price trends and the Middle East conflict response on April 2, where participants discussed (i) March consumer price trends and (ii) price developments and management measures for key livelihood items under special monitoring, including those affected by the Middle East conflict. Vice Minister Lee noted that “consumer prices rose 2.2% in March, supported by falling agricultural prices and the implementation of price caps, despite upward pressure from higher petroleum prices driven by the Middle East conflict and rising global oil prices.” He added that “given heightened volatility in global oil prices and persistent upside risks, all ministries should work together to ensure price and supply stability across key items.” The meeting marked the first since the launch of the Middle East Conflict Response Team under the Livelihood Price Task Force. Relevant ministries reviewed price trends and discussed management measures for 43 key items under special monitoring, including manufactured goods and processed food products potentially affected by the conflict. The government will step up monitoring and conduct on-site inspections at 10,000 gas stations nationwide to prevent excessive price hikes following the second adjustment of price caps on petroleum products. It will also expand supply measures for chicken, whose prices have risen recently due to livestock disease outbreaks, and provide discounts of up to 40% starting April 2. In addition, the government plans to allocate KRW 15 billion over April and May to expand discount support for essential items such as rice, eggs, and mackerel, which have seen strong price increases. Meanwhile, daily prices of key livelihood items among manufactured goods, processed foods, and dining-out services in the special monitoring list will be newly surveyed by the Ministry of Data and Statistics in order to closely track any fluctuations stemming from the Middle East conflict. Items with potential supply or price concerns will be continuously added to the list and subject to intensified management. Please refer to the attached files. 

Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol chaired the first meeting on macroeconomic, fiscal and financial issues on April 1, 2026 at the Government Complex Seoul. With the attendance of Minister of Planning and Budget Park Hong-geun and Chairman of the Financial Services Commission Lee Eok-weon, the meeting focused on discussing policy responses to the ongoing Middle East conflict. In light of the heightened macroeconomic volatility, coordinating major policy tools—including fiscal policy, taxation, finance, and foreign exchange—has become paramount. This inaugural meeting thus aims to find the optimal policy mix and solidify a framework for close cooperation. The participants shared the view that, as uncertainty surrounding the Middle East situation has persisted for five weeks, there are growing concerns about its impact not only on the real economy and financial markets but also on vulnerable groups. In this regard, they underscored the importance of the swift passage and execution of the supplementary budget proposal recently submitted to the National Assembly. They also committed to making all-out efforts to ensure close communication and cooperation with the National Assembly during the deliberation process, and to thoroughly prepare for immediate execution once the budget is approved. Given the high level of uncertainty, the participants agreed to proactively review and prepare available policy measures in case the conflict becomes prolonged, and to respond swiftly when necessary. Going forward, they agreed to hold the meeting on a monthly basis to discuss not only current macroeconomic issues but also structural challenges such as inequality and declining potential growth, while ensuring consistent and timely policy responses through close coordination among the relevant authorities. Please refer to the attached files. 

The Ministry of Finance and Economy held the inaugural meeting of the World Government Bond Index (WGBI) Monitoring and Investment Promotion Task Force on April 1, 2026, at the Government Complex Seoul, chaired by Deputy Minister for Treasury Hwang Soon Kwan. The meeting was convened to coincide with the commencement of Korea’s inclusion in the WGBI, with participation from the Financial Services Commission, the Bank of Korea, the Financial Supervisory Service, and the Korea Securities Depository. During the meeting, participants discussed trends in foreign investment flows before and after the WGBI inclusion and established related monitoring plans. Deputy Minister Hwang emphasized that the Task Force should play a key role in ensuring both stability and further advancement of Korea’s government bond market. He underscored the importance of closely monitoring capital inflow trends and facilitating smooth inflows across relevant institutions. He also called for proactive efforts beyond monitoring, urging each institution to identify and address difficulties faced by foreign investors in advance and to actively explore additional measures to promote further capital inflows. The government plans to regularly monitor foreign capital inflows through the Task Force, while actively formulating measures to promote such inflows. In addition, it will extensively conduct investor relations (IR) targeting overseas investors, with the aim of maximizing the benefits of Korea’s inclusion in the WGBI. Please refer to the attached files.