SEOUL: South Korean companies are seeking responsive measures to cope with soaring international oil prices as turmoil in the Middle East continues, industry sources said Monday, while the government called for efforts to stabilize domestic fuel prices. Major companies here, including Samsung Electronics Co., SK Group, Hyundai Motor and Hanwha Group, have held emergency meetings over the past few days to monitor the volatility in the global energy market and come up with ways to minimize the impact of the Middle East crisis on their businesses, according to the sources. DNA
\nIn particular, the airline and shipping industries, heavily affected by fuel prices, have been considering various risk-hedging measures. Flag carrier Korean Air Co. said it is currently hedging up to 50 percent of its expected annual fuel consumption and will flexibly respond to fluctuating oil prices, while HMM Co., Korea\u2019s largest shipping company, said it plans to soon begin imposing fuel surcharges.
\nOther companies are looking for ways to respond to rising raw material prices and foreign exchange volatility as well, amid concerns the Middle East crisis may also exacerbate global economic slowdown and create stagflation in the Korean economy.
\nA recent report by Hyundai Research Institute showed that Korea\u2019s economic growth rate in 2026 could fall by 0.3 percentage point if the average oil prices this year hover around the US$100 per barrel level. Brent crude oil prices, the international oil benchmark, reached $107.54 per barrel at 7:26 a.m., jumping 14.85 percent from the previous day to surpass the psychologically important barrier of $100 per barrel.
\nMeanwhile, as a way to stabilize domestic fuel prices, Industry Minister Kim Jung-kwan earlier in the day called on major oil refiners to refrain from excessively raising prices, according to his office.
\n\u201cWe ask that transparent and fair petroleum pricing be implemented to ensure that the burden of rising international oil prices due to the recent situation in the Middle East is not unilaterally or excessively passed on to consumers,\u201d Kim said in a meeting with oil refinery industry representatives and related authorities in Seoul, according to the Ministry of Trade, Industry and Resources.
\nOfficials from SK Energy Co., GS Caltex Corp., S-Oil Corp. and HD Hyundai Oil Bank Co. attended the meeting. Kim noted that although domestic oil prices normally reflect a change in global oil prices with a two-week term, prices here have escalated swiftly after the United States and Israel initiated airstrikes against Iran last week.
\nThe minister warned that any attempts to take advantage of rising international oil prices in a way that undermines efforts to stabilize people\u2019s livelihoods will be met with grave responses.<\/p>\n","protected":false},"excerpt":{"rendered":"
SEOUL: South Korean companies are seeking responsive measures to cope with soaring international oil prices as turmoil in the Middle East continues, industry sources said Monday, while the government called for efforts to stabilize domestic fuel prices. Major companies here, including Samsung Electronics Co., SK Group, Hyundai Motor and Hanwha Group, have held emergency meetings […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-535820","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n