South Korea Finance minister hints at expanding vehicle rotation system to private sector if oil prices further rise

SEOUL: South Korea Finance Minister Koo Yun-cheol said Sunday the government could expand a mandatory five-day vehicle rotation system to the private sector if global oil prices rise to US$120-130 per barrel as part of nationwide energy-saving efforts amid an escalating conflict in the Middle East.

“If the situation worsens, we may have to raise the national resource crisis alert to Level 3,” Koo told a KBS television interview. “In that case, we would extend the vehicle rotation system to the private sector and seek public cooperation.”

The finance minister said the government will closely monitor developments in every aspect, noting that a rise to $120-$130 could trigger a Level 3 alert from the current $100-$110 level.

His remarks came after the government last week raised the alert by one notch to Level 2 under its four-tier national resource security crisis warning system, citing potential disruptions to crude oil supplies.

At the same time, it enforced a mandatory five-day vehicle rotation system for the public sector while asking the private sector to voluntarily participate in the program.

The system restricts vehicles from operating one day out of every five business days based on the last digit of their license plate numbers.

The government is also working on a supplementary budget worth 25 trillion won (US$16.6 billion) to help ease the burden of rising oil prices and support small and medium-sized enterprises, as well as vulnerable households affected by the prolonged conflict.

The ruling Democratic Party and the government have agreed to submit the bill to the National Assembly later this week.