Finance Minister Hong Nam-ki forecast that the escalating crisis in Ukraine could have a growing impact on the domestic economy.

At a meeting with officials to check up on domestic competitiveness in materials, parts and equipment on Thursday, Hong said it is regrettable that Japan has yet to lift export curbs imposed in 2019 as a result of wrangling over colonial-era disputes.

The minister added that Seoul's response measures to reinforce the three areas have served to reduce the adverse impact of global supply chain disruptions stemming from the COVID-19 pandemic.

Hong assessed that the Russian invasion of Ukraine has already begun to impact global supply chains and financial markets, which in turn are having direct and indirect effects on the local economy. He added that the ramifications are projected to intensify.

The minister emphasized that the government's special task force is responding from all directions, citing that reserves of items heavily dependent on importing from Russia and Ukraine, such as neon and krypton, had been expanded to maintain short-term supply.