President signals emergency measures as Middle East crisis batters Korea's economy

President Lee Jae-myung said Tuesday that the Middle East war is dragging on, while asserting that "a preemptive emergency response has been strongly put in place." On Monday, Prime Minister Kim Min-seok also voiced concern over the economic situation following the Middle East crisis, describing it as “indeed urgent” during a meeting at the Korea Chamber of Commerce and Industry (KCCI). He noted that the topic had been discussed during a regular presidential briefing over lunch earlier the same day. “Those responsible for the economy on the ground will recognize the gravity of the situation with even greater urgency and feel the mounting pressure,” Kim warned. Even prior to the Iran conflict in late February, Korea’s economy had slowed significantly. According to the Bank of Korea, the country’s gross domestic product (GDP) growth halved to 1 percent from 2024 to 2025, reflecting weak domestic demand and export headwinds. The Bank for International Settlements said Korea's total debt including government, household, and corporate borrowings has surpassed 6,500 trillion won ($4.

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