Crisis in Ukraine feared to have big impact on South Korean economy: CFO

This photo, taken on Wednesday, shows a gas station in Seoul selling gasoline at 2,137 won ($1.77) a liter amid soaring international oil prices following Russia’s invasion of Ukraine . (Yonhap)

Finance Minister Hong Nam-ki said on Thursday that the current crisis around Ukraine is expected to have significant impacts on South Korea’s economy, pledging to seek all political means to overcome difficulties.

The government has closely followed Russia’s recent military operations against Ukraine, as it has joined global efforts led by the United States to impose sanctions on Russia.

“Russia’s invasion of Ukraine has negatively affected global supply chains and financial and real economy sectors, and these impacts are likely to worsen,” Hong said during the meeting. a committee meeting aimed at enhancing the competitiveness of the country’s parts, materials and equipment segments.

South Korea has made every effort to minimize the impacts by taking measures, including securing additional stockpiles of raw materials such as neon and krypton, Hong said, as the country relies heavily on Russia and China. Ukraine for imports of these items.

South Korea depends on foreign supplies for most of its energy needs.

The Minister also pledged to continue to seek comprehensive measures to better support key sectors in their production and trade based on the experiences of overcoming Japan’s export restrictions and the crisis in the supply of urea.

South Korea suffered from a shortage of urea solution, a key fluid used in diesel vehicles to reduce emissions, late last year following China’s export restrictions.

In July 2019, Japan imposed export controls on chemicals vital to the South Korean chip industry in apparent retaliation for the 2018 South Korean Supreme Court rulings ordering Japanese companies to compensate South Korean victims of forced labor during the 1910-1945 Japanese colonial rule on the Korean Peninsula. (Yonhap)

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