Lee Eok-won, 1st Vice Minister of Strategy and Finance, Chairs the 34th Price-Related Vice Ministers' Meeting
Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, presides over the 34th Price-Related Vice Ministers' Meeting and delivers opening remarks at the Government Seoul Office Building on the 3rd. (Photo by Ministry of Economy and Finance)
[Sejong=Asia Economy Reporter Moon Chaeseok] The government will reflect 59 billion won in discount coupons for agricultural, livestock, and fishery products in next year's budget to stabilize soaring prices.
Lee Eok-won, the 1st Vice Minister of the Ministry of Economy and Finance, chaired the '34th Price-Related Vice Ministers' Meeting' on the morning of the 3rd and stated, "Last month's inflation rate recorded 3.7%, an increase from October, marking a two-month consecutive inflation rate in the 3% range."
Vice Minister Lee cited the rise in petroleum prices due to the increase in international oil prices, the rise in dining-out and processed food prices reflecting increased material costs, and the strength of vegetable prices due to cold waves and pests as factors for last month's consumer price increase. Accordingly, 59 billion won will be allocated to discount coupons for agricultural, livestock, and fishery products. He said, "Considering the difficult price conditions, discount coupons for agricultural, livestock, and fishery products, which were not included in the original government budget, will be reflected at the National Assembly stage."
Support for tariff quotas on raw materials with rapidly rising prices, such as corn for processing and sugar, will also be increased. The budget for feed raw material purchase funds will be increased to 64.7 billion won next year, and as part of support for the dining-out industry, the special application period for the tax credit rate and limit for duty-free agricultural product deemed purchase tax will be extended for two years until 2023.
Vice Minister Lee also indicated that the price outlook for this month is not bright. He said, "This month's consumer prices will be downward factors due to the reflection of the fuel tax reduction effect," but added, "However, uncertainties such as global supply chain disruptions, increased volatility in international raw material prices, and the emergence of the Omicron virus still remain." Accordingly, measures will be taken to encourage price reductions at self-operated gas stations so that the fuel tax reduction effect is quickly reflected. In addition, the distance requirements between some urban budget gas stations will be relaxed to allow more budget gas stations, which have relatively cheaper fuel costs, to open in urban areas.
To prepare for the surge in non-ferrous metal prices, the flexibility of managing stockpiled materials that can be released will be enhanced, and operational guidelines will be improved so that small and medium-sized enterprises can be given priority sales during discount releases. Using stockpiled vegetables, prices of items with strong price increases such as cabbage and garlic will be stabilized. For eggs, which have an unreasonable price determination structure, two egg auction markets will be operated from the end of this month to determine prices through auctions.
Furthermore, the government has decided to introduce a price responsibility system by sector for each relevant ministry. Each ministry will prepare a comprehensive price stabilization plan including price and supply-demand monitoring results for their respective sectors, regularly check and implement it through meetings.
Vice Minister Lee said, "Price stabilization is a fundamental task for stabilizing the livelihood economy, so we will maintain heightened vigilance," and added, "We will closely monitor domestic and international price trends and proactively and decisively implement necessary measures to block the spread of excessive inflation expectations."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
