Seoul: South Koreans flocked to gas stations to fill up their tanks as gas stations in Seoul, South Korea, were crowded yesterday in response to soaring global oil prices amid unrest in Iran. Although the overall atmosphere wasn't panicking, yesterday saw longer-than-usual queues at gas stations. Most drivers wanted to fill their tanks before prices rose further. Retail gasoline prices in Seoul soared to 1,780 won per liter, with some stations in economic areas reaching as high as 2,780 won per liter. This prompted people to rush to fill up their tanks before prices increased again, following the usual price adjustment cycle which typically lags behind the global market by 1-2 weeks.
According to Thai News Agency, South Korea is currently facing a currency crisis, with the won weakening overnight to below 1,500 won per dollar for the first time in 17 years. It recovered slightly after the Bank of Korea signaled its readiness to intervene in the market. This is because South Korea imports nearly 100% of its crude oil, making its economy highly vulnerable to both oil price volatility and the weakening won, which would further exacerbate the cost of imported energy.
The KOSPI stock index plummeted sharply in yesterday's trading, prompting the South Korean stock exchange to temporarily halt trading, or trigger a circuit breaker, to control volatility after massive selling by foreign investors.
The South Korean government is currently preparing several measures to cope with the situation. The central bank has signaled its readiness to manage liquidity to prevent excessive volatility in the won. Meanwhile, relevant agencies are preparing to inspect gas stations to prevent hoarding or price gouging, and have begun discussions with the International Energy Agency (IEA) regarding the use of energy reserves should the disruption in the Strait of Hormuz persist.