South Korea considers issuing energy subsidy vouchers and increasing nuclear and coal power generation.

The South Korean government said on Friday that if the Middle East crisis leads to global fuel price increases that raise power generation costs, the government will consider providing additional energy subsidy vouchers to vulnerable households. If oil prices remain high and liquefied natural gas supplies are disrupted, South Korea is also prepared to increase its nuclear and coal power generation. Kim Jeong-gwan, Minister of Trade, Industry and Resources, said on Friday: “The government will take all necessary measures to minimize the burden on the public, including stabilizing energy supply and demand, managing prices, and providing support to groups that are vulnerable to rising energy costs.” Data from the Korea Trade Association shows that South Korea relies on imports for almost all of its energy, with about 70% of its oil and 20% of its liquefied natural gas sourced from the Middle East. To reduce dependence on liquefied natural gas, the Ministry of Climate and Energy announced this week that it will accelerate the restart of nuclear reactors that are currently under maintenance, with two units expected to resume operations as early as March and the other four to return to operation by mid-May. The ministry also said that if there is a shortage of liquefied natural gas, it will flexibly increase coal-fired power generation during periods when fine particulate matter has less of an impact on air quality. To address rising energy costs, South Korea has imposed a price cap on domestic fuel prices starting from Friday.