South Korea’s Finance Minister Koo Yun-cheol indicated on Sunday that the government might broaden the mandatory five-day vehicle rotation system to include the private sector if global oil prices escalate to between US$120 and $130 per barrel. This measure is part of a broader national effort to conserve energy amid rising tensions in the Middle East.
In a televised interview, Koo stated that if the situation deteriorates further, the government could elevate the national resource crisis alert to Level 3. Under such circumstances, the vehicle rotation system, which currently applies only to the public sector, would be extended to private vehicles, with authorities seeking cooperation from the general public.
The finance minister emphasized that the government is vigilantly monitoring all developments, noting that an increase in oil prices to the $120-$130 range could prompt the upgrade from the current Level 2 alert, which covers the $100-$110 price bracket. This follows last week’s decision by the government to raise the alert level by one notch due to concerns over potential crude oil supply disruptions.
Alongside the alert increase, the government implemented a compulsory five-day vehicle rotation system for public sector vehicles, while encouraging private sector participation on a voluntary basis. This system restricts vehicles from operating one day every five business days, determined by the last digit of their license plate numbers.
In addition to these measures, the government is preparing a supplementary budget amounting to 25 trillion won (approximately US$16.6 billion) aimed at alleviating the financial strain caused by rising oil prices. The funds are intended to support small and medium-sized enterprises as well as vulnerable households affected by the ongoing conflict. The ruling Democratic Party and the government have agreed to present this budget proposal to the National Assembly later this week.
