Vice Minister Ki Jae: "Consumer Prices Up 0.4%... Due to Reduced Demand-Side Pressure" (Comprehensive)

2020 1st Innovation Growth Strategy Review Meeting and Policy Review Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Kim Yongbeom, the 1st Vice Minister of the Ministry of Economy and Finance, said on the 3rd regarding last year's annual consumer price trends, "Last year was a year with low macroeconomic momentum, and the demand-side pressure somewhat decreased, which had an impact."

Vice Minister Kim stated in a meeting with reporters after the 1st Vice Ministerial Meeting on Price Relations and the 1st Innovation Growth Strategy Review Meeting at the Government Seoul Office that "last year, supply-side factors of agricultural, livestock, fishery products, and petroleum products were significant."

He explained, "Looking at the consumer price records, it is going as forecasted with 0.% in October, 0.2% in November, and 0.7% in December," adding, "It is showing as the central bank expected and is normalizing." He further added, "Demand is expected to improve as projected at 2.4% this year, and supply-side downward factors will also be considerably eased."

He mentioned, "For these reasons, we forecasted a price increase rate in the 1% range and expect it to be realized." He also predicted, "If the economic policy direction plans are implemented early by each ministry, the economy will improve significantly."

In his opening remarks, Vice Minister Kim emphasized, "We will also implement financial support exceeding 1 trillion won this year by utilizing the special accounts of Korea Eximbank and Korea Trade Insurance Corporation, as well as the Global Plant, Construction, and Smart City (PIS) Fund."

He added, "The overseas infrastructure market is undergoing structural changes such as intensified competition among countries for orders and a shift from fiscal-centered to investment-development type projects," and said, "To respond to these structural changes, a comprehensive improvement of the global infrastructure market entry strategy is necessary."

He expressed, "The government will newly organize a support system for each order stage, from project discovery to financial support, to facilitate smooth industrial structure transition."

Furthermore, he emphasized, "We will also prepare strategies for entering emerging market infrastructure through intergovernmental cooperation with countries like China and the United States," adding, "We will establish a cooperation platform for joint entry strategies with China and Korea and for implementing them." He continued, "With the United States, we will form a joint consortium within the first half of the year to prepare joint entry projects in third countries and financial cooperation measures."

Regarding follow-up measures to the 2020 Economic Policy Direction, he mentioned, "Now, each ministry needs to concretize detailed plans within the broad framework of policy directions and key tasks and faithfully implement them on the ground."

Regarding the Lunar New Year livelihood stabilization measures, he said, "Considering that the liquidity arrived quickly for the Lunar New Year, we will support ordinary people to start this year vigorously," and added, "We will also devise measures to promote domestic consumption and revitalize tourism so that warmth can spread in the local economy during the Lunar New Year."