Price Increase Highest in 9 Years 11 Months... Hong Nam-ki Announces "Introduction of Price Ministry Responsibility System" (Update)

Hong "Abolish current 1km minimum distance for budget gas stations"

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki delivering opening remarks at the Emergency Economic Central Countermeasures Headquarters meeting held on the 2nd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki announced on the 2nd that "the consumer price index in November is expected to rise more sharply than last month due to price increases in petroleum products, dining out processed foods, and vegetables." As he stated, the consumer price inflation rate this month recorded 3.7% compared to the same month last year, rising 0.5 percentage points from last month's 3.2%. This is the highest figure in 9 years and 11 months since the 4.2% increase in December 2011.

Deputy Prime Minister Hong presided over the Emergency Economic Central Countermeasures Headquarters meeting that morning and made this announcement. He explained, "Amid the global price increase trend, our level is lower compared to major countries," and added, "Next month, the rate of increase is expected to slow down due to the easing of international oil price rises, the effect of the fuel tax reduction, and the early end of kimchi-making season." He further stated, "We will mobilize all possible policy measures to ensure that the living costs for ordinary citizens are managed as stably as possible."

Deputy Prime Minister Hong decided to strengthen policy measures, including introducing a 'Ministry Responsibility System' where government ministries take charge of price management by sector. He emphasized, "We will concentrate all our price response capabilities by the first half of next year through a periodic ministerial inspection system for price trends, the introduction of a ministry responsibility system by sector, and the operation of local government price situation task forces (TFs)."

Additionally, to enhance the effect of the fuel tax reduction policy, he announced plans to abolish the current 1km distance restriction to encourage the expansion of budget gas stations. Deputy Prime Minister Hong said, "To quickly reflect the effect of the fuel tax reduction, we will encourage price reductions at privately owned gas stations and abolish the current 1km distance condition to expand some budget gas stations within urban areas." He added, "We will also expand discount coupons for agricultural, livestock, and fishery products, finalize the scale of expanded tariff quotas for raw materials with sharp price increases next month, and extend the special period for the exemption of input tax credit rates and limits on duty-free agricultural products by two years."