Lee Eok-won, 1st Vice Minister of Strategy and Finance, Holds the '3rd Price-Related Vice Ministers' Meeting'
[Sejong=Asia Economy Reporter Kwon Haeyoung] The government will require local governments to notify the Ministry of the Interior and Safety in advance before raising public utility fees such as city bus and water and sewage charges, and will provide incentives to local governments and public enterprises that strive to freeze or reduce fees.
Lee Eokwon, First Vice Minister of the Ministry of Economy and Finance, announced this on the morning of the 21st at the '3rd Vice Ministers' Meeting on Prices' held at the Seoul YWCA Hall, stating, "We will establish a local price management system involving all local governments centered on the Ministry of the Interior and Safety."
The Vice Minister said, "We will expand the scope of comparison among local government public utility fees," adding, "Currently, prices by 17 metropolitan cities and provinces are compared and disclosed on the Ministry of the Interior and Safety’s website, but from February, the scope of local price disclosure will be expanded to 243 cities, counties, and districts to promote competition."
Incentives will also be provided to local governments or public enterprises that contribute to price stabilization. He explained, "Efforts by local governments to freeze or reduce fees will be reflected as evaluation factors in the 2022 Balanced Development Special Account, with differentiated support provided accordingly. Additional support measures will also be considered based on the performance of stabilizing local public utility fees. Furthermore, in the management evaluation of local public enterprises, if losses occur due to fee freezes, evaluation disadvantages will be excluded and bonus points will be granted to encourage local governments to actively participate in freezing public utility fees."
Local public utility fees have been maintained at a stable level so far, but increases are expected due to recent rises in energy prices. According to government research, no local governments plan to raise urban railway or city gas retail fees in the first half of this year, but some are conducting research projects to adjust city bus and taxi fares. Some local governments plan to raise water and sewage and garbage bag fees in the first half of the year, but the government plans to request postponement of these increases as well.
Additionally, the investigation of delivery fees will be expanded through consumer organizations. The Vice Minister said, "Until now, consumers had to enter each delivery application individually to compare delivery fees," adding, "From February, the Consumer Organizations Council will investigate delivery fee status once a month and disclose it on their website."
Moreover, convenience stores will be added to the survey targets of the Consumer Organizations Council’s Price Monitoring Center, and the frequency of online shopping mall surveys will increase from twice a month to four times a month.
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