Hong Nam-ki Urges Ministry of Economy and Finance Staff to Focus on Stabilizing Living Costs Throughout August

September 2 'Expanded Executive Meeting' Held
Ordered 90% Execution of 2nd Supplementary Budget by End of September
Emphasis on Carbon Neutrality Basic Act and Climate Response Fund Budget Measures

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, presides over and speaks at the expanded executive meeting of the Ministry of Economy and Finance on the 2nd. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized to Ministry of Economy and Finance employees on the 2nd to "focus on stabilizing the cost of living throughout August." This is because the rise in egg prices combined with the heatwave has increased concerns about a sharp surge in 'table prices' directly affecting people's livelihoods.

Deputy Prime Minister Hong presided over an expanded executive meeting at the Government Seoul Office at 4:30 p.m. that day and stressed this point. The video conference included Lee Ok-won, 1st Vice Minister of Economy and Finance, Ahn Do-gul, 2nd Vice Minister, as well as first-level officials and bureau chiefs.

He stated that they must be well prepared to respond to major current issues such as price management, legislative responses related to the readjustment of the greenhouse gas reduction target (NDC), the announcement of new housing sites under the 2·4 real estate supply plan, the announcement of the Korea Land and Housing Corporation (LH) organizational restructuring plan, and the improvement plan for the public institution management evaluation system.

Although there is a widespread sense of crisis that expectations for economic recovery may be dampened due to the fourth wave of COVID-19, he emphasized that criticisms that are not based on facts should be corrected as much as possible.

Deputy Prime Minister Hong ordered, "Prepare so that the Hope Recovery Fund for small business owners and the Coexistence National Support Fund included in the second supplementary budget can be executed as quickly as possible, and ensure that more than 90% is executed by the end of next month."

He emphasized, "Recently, vegetable prices have been rising due to the heatwave following the rise in egg prices, and since the price pressure on agricultural and marine products is significant and directly related to people's livelihoods, please focus on stabilizing the cost of living throughout this month."

He added, "In particular, thoroughly recheck the supply of domestic eggs and the import of 100 million eggs per month for two months starting in August, and improve all stages of 'production-distribution-sales' so that egg prices fall."

This month, since they must announce ▲ next year's budget plan ▲ the 2021-25 medium-term fiscal management plan ▲ responses to the settlement National Assembly ▲ new housing sites under the 2·4 plan ▲ LH organizational restructuring plan ▲ and the improvement plan for the public institution management evaluation system, he urged thorough preparation and inter-ministerial coordination.

Deputy Prime Minister Hong reminded, "Regarding the readjustment of the 2030 NDC, this month alone, we must respond to the National Assembly for the enactment of the Carbon Neutrality Basic Act, address budget issues for next year's climate response fund upon enactment, and by next month, review agenda items for the Carbon Neutrality Committee."

He said, "Please prepare quickly and smoothly for government and ruling party consultations to set the optimal level that harmoniously considers the 2050 carbon neutrality goal while absorbing the shock to the industry."

The NDC target is planned to be raised from the existing goal of reducing 24.4% by 2030 compared to the 2017 annual emissions of 709.14 million tons, and the exact reduction rate is a matter of keen interest. This is because the impact on the industry and, furthermore, the Korean economy will be very significant.