Lawmakers on the party’s Middle East crisis economic response task force said in a briefing that the measures are aimed at stabilising energy supply and prices, as oil and gas shipments to South Korea have been blocked by tensions in the Strait of Hormuz.

South Korea relies almost entirely on imports for its energy, buying about 70% of its oil and 20% of its liquefied natural gas (LNG) from the Middle East, according to Korea International Trade Association data.

The government would prioritise managing LNG ​supplies by increasing coal and nuclear output while reducing reliance on LNG-fired power generation, Democratic Party lawmaker Ahn Do-geol said.

Limits capping coal ​power output at 80% of installed capacity would be lifted from Monday, Ahn said. In comparison, maintenance work at six nuclear reactors would be completed early to boost nuclear utilisation from the high-60% range to 80%.

South Korea on Friday introduced a gasoline price cap at 1,724 won ($1.15) per litre.

It ​will adjust these prices every two weeks to reflect changes in global oil prices.

Ahn said gasoline and diesel prices on Sunday ​had fallen by 58 won and 77 won per litre, respectively, since the price cap was implemented.

SUPPLEMENTARY BUDGET

A supplementary budget would be drawn ‌up by ⁠the end of this month and submitted to parliament, Ahn said.

The extra budget is expected to include compensation for refiners linked to the fuel price cap, energy voucher payments, logistics cost support for exporters and expanded investment in renewable energy.

Democratic Party leader Jung Chung-rae said in a separate party meeting on Monday that it would fast-track passage of the extra budget proposal within ​10 days after it is ​submitted.

The Budget Ministry said there ⁠had been no decision yet on a specific date for a supplementary budget, but would prepare one as soon as possible.

The ruling party and government were also considering designating the Yeosu petrochemical complex as a special industrial crisis response zone, Ahn said.

Shortages of raw materials such ​as aluminium, sulphur ⁠and naphtha were severe, and that supply disruptions and price spikes for naphtha — 25% of which is imported from the Middle East — could force petrochemical companies to cut production, he said.

To address this, the government would freeze exports of domestically produced naphtha at last year’s ⁠levels and ​seek alternative import sources, Ahn said.

The task force also agreed to double ​the ceiling on export vouchers usable for international transport costs to 60 million won and to introduce emergency logistics support vouchers for exporters to the Middle ​East, providing 10 million won each to 1,000 companies, Ahn said.