Vice Minister Gi Jae: "Focusing Policy Efforts on Early Stabilization of Agricultural and Livestock Product Prices... Inflation Risks Everywhere"

Innovation Growth Strategy Review Meeting

Kim Yong-beom, the 1st Vice Minister of the Ministry of Economy and Finance, is presiding over the 8th Innovation Growth Strategy Review Meeting at the Government Seoul Office on the 5th. On this day, the meeting was held concurrently with the Policy Review Meeting, the Korean New Deal Review Task Force, and the 4th Vice Ministers' Meeting on Price Relations. 2021.3.5 [Photo by Yonhap News]

[Asia Economy Reporter Son Sun-hee] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, said on the 5th, "We will focus our policy efforts on the early stabilization of prices of agricultural and livestock products closely related to the livelihood of ordinary people."

On the morning of the same day, Vice Minister Kim chaired the Innovation Growth Strategy Review Meeting at the Government Seoul Office and said, "We will faithfully implement customized supply and demand stabilization measures such as expanding imports, strengthening growth monitoring, and increasing government stockpiling and release, focusing on eggs, vegetables, and rice, which have recently maintained high prices." He added, "We will closely monitor risk factors such as crude oil and raw material prices and prepare to ensure that necessary measures are taken in a timely manner."

According to the consumer price trend for last month announced by Statistics Korea the day before, consumer prices, which rose by only 0.5% last year, showed an increased rate of rise with 0.6% in January and 1.1% in February.

Vice Minister Kim analyzed, "Supply-side shocks such as worsening supply and demand conditions for agricultural and livestock products and rising petroleum prices are leading the inflation trend," but also said, "Considering that the COVID-19 situation has not yet ended, the possibility of a rapid price surge in the short term appears limited."

However, he emphasized, "Inflation risk factors such as increased global liquidity and heightened inflation expectations during the COVID-19 response process, as well as rising prices of crude oil and other raw materials, are present everywhere," and added, "Considering the total demand pressure due to vaccine effects, inflation concerns should not be overlooked."

Meanwhile, Vice Minister Kim reviewed the progress of major tasks in this year's economic policy direction at the meeting. He stated, "We will strengthen support for vulnerable sectors such as domestic demand and employment," and added, "We will issue more than 58% (10.5 trillion won) of Onnuri and local love gift certificates by the first half of the year and promptly launch projects such as high-efficiency home appliance purchase rebates to support domestic demand."