(LEAD) Price caps on fuel products to remain in place for some time: finance chief

(ATTN: ADDS additional remarks from the finance minister from 10th para, new photo)By Kim Han-joo SEJONG, May 11 (Yonhap) -- Finance Minister Koo Yun-cheol said Monday the temporary price caps on fuel products will remain in place for some time as the government monitors instability in the Middle East. The government currently reviews fuel price ceilings every two weeks under the price system introduced in mid-March to curb inflation driven by surging global oil prices, after the Strait of Hormuz was effectively closed following U. S.-Israeli strikes on Iran in late February. "We plan to maintain the measure for some time until the situation in the Middle East stabilizes," Koo told reporters. Under the latest adjustment announced Thursday, the government froze fuel price ceilings for the third consecutive review period. Asked whether the government plans to maintain the price cap system until the end of the war, Koo said authorities would continue monitoring global oil market conditions. "We need to watch oil price trends," he said. Koo also said the South Korean government has responded more effectively than many other countries to inflationary pressure caused by the Middle East crisis. The country's consumer prices rose 2.6 percent in April from a year earlier, mainly due to higher fuel costs linked to the conflict. "Compared with other major countries, inflation appears to have been managed relatively well," he said. Finance Minister Koo Yun-cheol speaks to reporters at the government complex in the central city of Sejong on May 11, 2026, in this photo provided by his office. (PHOTO NOT FOR SALE) (Yonhap) Despite the challenges, Koo expected the South Korean economy to grow more than 2 percent in 2026, citing the country's stronger-than-expected first quarter gross domestic product (GDP) growth and upgraded economic forecasts from global investment banks. "How far beyond the 2 percent threshold it will go remains to be seen, as it depends on other factors, such as the strength of the semiconductor upcycle and effects from the conflict in the Middle East," he said, adding that a detailed forecast will be announced next month. The latest data showed that the country's GDP expanded 1.7 percent in the first quarter, marking the strongest quarterly growth since the third quarter of 2020, when the economy expanded 2.2 percent. The figure was also nearly double the central bank's forecast of 0.9 percent growth. Meanwhile, the finance minister called for an amicable settlement to the recent labor-management dispute at Samsung Electronics Co. over performance-based pay. The unionized workers earlier announced plans to stage a general strike starting May 21. "We should not let the discord between labor and management cause us to squander this opportunity, when the world is racing to secure semiconductors from South Korea," he said. "I once again urge for the two sides to make a wise judgment." Regarding the upcoming visit by U. S. Treasury Secretary Scott Bessent, Koo said no separate meetings have been scheduled. Finance Minister Koo Yun-cheol (R) speaks to reporters at the government complex in the central city of Sejong on May 11, 2026, in this photo provided by his office. (PHOTO NOT FOR SALE) (Yonhap) khj@yna.co.kr(END)