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SEOUL, May 6 (Yonhap) -- Finance Minister Koo Yun-cheol said South Korea's stock market has performed better than before tensions in the Middle East began, attributing the gains to policy efforts.

Earlier in the day, the benchmark Korea Composite Stock Price Index (KOSPI) reached a record high, surpassing the 7,000 mark for the first time ever, led by gains in big tech shares.

"The stock market is very sensitive, yet it has performed better than before the war," Koo told reporters on Tuesday in Samarkand, Uzbekistan, where he is attending a series of international meetings.

He added that the market appears to be evaluating positively the government's policy response to the situation surrounding Iran.

Koo also emphasized that both the domestic market and the international community view South Korea as responding more effectively than other countries to inflationary pressures stemming from the Middle East crisis.

Consumer prices in South Korea rose 2.6 percent in April from a year earlier, driven primarily by higher fuel costs linked to the conflict.

The government said price stabilization measures, including a fuel price cap and a temporary fuel tax cut, reduced overall inflation by 1.2 percentage points.

However, Koo warned that the conflict, now entering its third month, also poses downside risks for the economy.

"We will closely monitor and respond to rising diesel and gasoline prices caused by higher crude oil prices, as well as the resulting inflationary pressures," the policymaker added.

This image, provided by the finance ministry, shows Finance Minister Koo Yun-cheol in Samarkand, Uzbekistan, on May 5, 2026. (PHOTO NOT FOR SALE) (Yonhap)

khj@yna.co.kr
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