Choo Kyung-ho "Lowering the Reference Price for Diesel Fuel Price-Linked Subsidy Payments"

Deputy Prime Minister Choo Kyung-ho Holds First 'Economic Ministers Meeting' Since Inauguration
"Our Economy Is Very Serious and Urgent... Overcoming Departmental Barriers to Unite as One Team"

[Asia Economy Sejong=Reporter Kwon Haeyoung] The government has decided to lower the standard price for the diesel fuel price-linked subsidy, currently set at 1850 KRW per liter (ℓ), to ease the burden on the transportation and logistics industries caused by recent high oil prices. Measures to stabilize flour prices are also expected to be announced soon.

On the 15th, Chu Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance, ordered this during the first 'Economic Ministers Meeting' held at the Government Seoul Office since his inauguration, urging prompt inter-agency working-level consultations on specific reduction plans and swift administrative procedures such as revising related notifications.

Currently, the diesel fuel price-linked subsidy is paid by the government covering 50% of the amount exceeding the standard price when the diesel price rises above 1850 KRW per liter. If the government lowers the subsidy payment standard price from 1850 KRW per liter, the scale of subsidy support can be increased.

The meeting, held as a courtesy meeting for the new economic minister, mainly discussed urgent livelihood issues such as price stabilization. Deputy Prime Minister Chu ordered the discovery of effective policy tasks for price and livelihood stabilization, including easing the burden of diesel prices and stabilizing flour prices.

He stated, "Our economy is in a very serious and urgent situation as multiple internal and external risk factors are acting simultaneously, such as the prolonged Ukraine crisis, the shift to tightening monetary policies in major countries, and expanding inflationary pressures. Relieving the livelihood burdens of the people who have recently experienced great difficulties is the top priority task of the new government economic team." He added, "Although the new government has just launched, we must start immediately with an extraordinary determination without the luxury of regrouping. To this end, the new government economic team needs to overcome the current crisis by uniting as one team beyond departmental barriers."

Additionally, he requested active cooperation in the National Assembly's review and thorough prior preparation so that the second supplementary budget bill for this year, which includes support for small business owners prepared simultaneously with the launch of the new government, can be finalized in the National Assembly this month.

Finally, Deputy Prime Minister Chu emphasized, "Recent price increases are mainly due to external conditions, so thorough management of external risks is necessary."

Immediately after his inauguration, Deputy Prime Minister Chu launched an emergency economic response task force (TF) led by the first vice minister of the Ministry of Economy and Finance. This is to monitor the real economy and economic situation in real time and prepare proactive response measures. The government plans to promptly prepare livelihood stabilization measures through discussions with related ministries.