South Korea weighs first driving curbs in 35 years on oil crunch
“We are reviewing whether to expand the system to the private sector to encourage public cooperation, but we hope the war will end soon so that such measures will not be necessary,” Finance Minister Koo Yun Cheol told broadcaster KBS on Sunday. he said.
South Korea has imposed driving restrictions on civil servants, limiting the frequency with which they can access government buildings by car based on their latest license plate number. Extending restrictions to the private sector would be the first such move since the 1991 Gulf War. This also signals growing concerns about the impending energy shock for the economy, which is a major player in global technology supply chains.
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President Lee Jae Myung last week appealed to the public to reduce energy use and use public transportation instead of driving to avoid power outages as the Iran conflict continues.
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South Korea, a major importer of crude oil and exporter of fuel to Asia and beyond, sees rising risks of rising inflation and the Iran conflict weighing on growth for a country dependent on energy imports from the Middle East. The country’s export growth maintained its momentum in early March thanks to resilient demand. But rising global crude oil prices are driving up raw material costs, while deteriorating shipping conditions and broader supply disruptions are putting pressure on trade flows.
