Seoul outlines price controls and 26.2 trillion won budget as ASEAN+3 officials warn of rising downside pressures

South Korea’s Ministry of Economy and Finance said on Thursday that finance and central bank deputies from Korea, China and Japan, along with their ASEAN counterparts, discussed the economic impact of the Middle East war and regional policy responses at meetings held by videoconference on Wednesday. The meetings, which included officials from 14 countries as well as the International Monetary Fund (IMF), Asian Development Bank (ADB) and ASEAN+3 Macroeconomic Research Office, were originally scheduled to take place in Manila but were moved online following the Philippines’ declaration of a national energy emergency.

Participants shared assessments of rising downside risks linked to energy price volatility and supply disruptions, and discussed policy coordination ahead of a finance ministers’ meeting in May. South Korea, which chaired the trilateral session, proposed closer real-time information sharing among Korea, China and Japan. The ministry said Seoul has activated emergency response measures, including a cap on petroleum product prices and a $17.7 billion (26.2 trillion won) supplementary budget without issuing deficit bonds, while institutions including the IMF and ADB called for targeted fiscal support, cautious monetary policy and supply chain diversification. Japan proposed holding an additional deputies’ meeting before May to reassess rapidly changing conditions.

South Korea’s Ministry of Economy and Finance said on Thursday that finance and central bank deputies from Korea, China and Japan, along with their ASEAN counterparts, discussed the economic impact of the Middle East war and regional policy responses at meetings held by videoconference on Wednesday. The meetings, which included officials from 14 countries as well as the International Monetary Fund (IMF), Asian Development Bank (ADB) and ASEAN+3 Macroeconomic Research Office, were originally scheduled to take place in Manila but were moved online following the Philippines’ declaration of a national energy emergency.

Participants shared assessments of rising downside risks linked to energy price volatility and supply disruptions, and discussed policy coordination ahead of a finance ministers’ meeting in May. South Korea, which chaired the trilateral session, proposed closer real-time information sharing among Korea, China and Japan. The ministry said Seoul has activated emergency response measures, including a cap on petroleum product prices and a $17.7 billion (26.2 trillion won) supplementary budget without issuing deficit bonds, while institutions including the IMF and ADB called for targeted fiscal support, cautious monetary policy and supply chain diversification. Japan proposed holding an additional deputies’ meeting before May to reassess rapidly changing conditions.

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