South Korea considers issuing energy subsidy coupons and increasing nuclear and coal-fired power generation.

The South Korean government said on Friday that if the global increase in fuel prices caused by the Middle East crisis pushes up electricity costs, the government will consider providing additional energy subsidy coupons to low-income households. If oil prices remain high and liquefied natural gas supply is disrupted, South Korea is also prepared to increase nuclear and coal-fired power generation. Minister of Industry, Trade and Resources Kim Jung-hwan said on Friday, "The government will take all necessary measures to minimize the burden on the public, including stabilizing energy supply and demand, managing prices, and providing support for groups vulnerable to the impact of rising energy costs." Data from the Korea Trade Association shows that South Korea is heavily dependent on imported energy, with around 70% of oil and 20% of liquefied natural gas sourced from the Middle East. To reduce their reliance on liquefied natural gas, the South Korean Ministry of Climate and Energy announced this week that it will accelerate the restart of nuclear reactors currently under maintenance, with two units expected to resume operation as early as March, and the other four by mid-May. The ministry also stated that if there is a shortage of liquefied natural gas supply, they will flexibly increase coal-fired power generation during periods when fine particulate matter has a lower impact on air quality. To cope with rising energy costs, South Korea has implemented a price cap on domestic fuel prices starting Friday.