Minister of Economy and Finance Choo Kyung-ho told an emergency meeting of economy-relevant ministers that the government will temporarily extend tax cuts on fuel consumption, set to expire at the end of October, and subsidy for diesel and natural gas by the end of December.

The country has applied the discount of 25 percent on gasoline consumption and 35 percent on diesel consumption.

Choo noted that concerns remained over a greater volatility in the economy and financial and foreign exchange markets, driven by a possible surge in global crude oil prices, though the higher volatility in oil prices had a limited impact on the economy until now.

Global oil prices rose sharply over the weekend amid growing worry about geopolitical tensions in the Middle East.

South Korea depends on the Middle East for about two-thirds of its crude oil imports and some one-third of natural gas purchases.