South Korean President Lee Jae Myung on Thursday urged citizens and businesses to cooperate in energy-saving measures as the ongoing Middle East conflict disrupts global energy markets. Speaking at an emergency economic response meeting, Lee reassured the public that electricity prices will remain unchanged, despite mounting financial pressures on the nation’s power sector.

Lee highlighted the government’s plan to impose another round of fuel price caps to shield the economy from the fallout of the U.S.-Israel war with Iran. “I urge gas stations to actively cooperate in setting prices in line with the intended purpose of the oil price cap system,” he said. He added that any attempts to exploit the crisis through hoarding or collusion would face strict penalties under a zero-tolerance policy.

While pledging no immediate increase in electricity rates, Lee emphasized the need for conservation. “Keeping electricity prices at the current level could significantly widen KEPCO’s losses,” he warned, referring to the state-run Korea Electric Power Corp., which has accumulated around 206 trillion won ($136.9 billion) in debt after supplying electricity below production costs, particularly during the global energy price surge following the Russia-Ukraine war.

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To reduce energy consumption, Lee encouraged both the public sector and citizens to adopt practical measures. He proposed a five-day vehicle license plate rotation system and urged greater use of public transportation. The president also stressed that increased reliance on electricity over petroleum-based products could further strain KEPCO’s finances and, in turn, government budgets.

In preparation for broader economic impacts, Lee instructed officials to draft a detailed supplementary budget. The ruling Democratic Party plans to submit the bill to the National Assembly next Tuesday to ensure the government is equipped to respond to ongoing disruptions in energy supply and rising global costs.

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