Choo Kyung-ho "Expect Inflation Rate Around 6%... Electricity Rate Increase Plan to Be Announced Soon"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho [Photo by Yonhap News]

[Asia Economy Sejong=Reporter Son Seon-hee] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 26th, "We can expect an inflation rate in the 6% range in June or July to August," adding, "Overall, high inflation will continue for a considerable period."

Deputy Prime Minister Choo appeared on 'KBS Sunday Diagnosis Live' that morning and said, "International oil prices, raw material prices, and international grain prices have surged sharply, inevitably affecting us." He continued, "(The reason for inflation) is mostly due to overseas factors, so if international oil prices drop sharply in the short term, it will ease the situation, but we do not expect that to happen anytime soon," adding, "We prioritize price stabilization as the top task and will mobilize all possible means."

Regarding the electricity rate hike scheduled soon, he said, "Since it cannot be postponed any longer, we plan to announce an appropriate level of electricity rate increase soon." The government initially planned to announce the electricity rate hike last week but postponed it. However, Deputy Prime Minister Choo explained, "Korea Electric Power Corporation (KEPCO) recently needs public understanding regarding its deficit, and related self-help measures such as unnecessary subsidiary sales, freezing and returning performance bonuses have been proposed."

On reforming public institutions including KEPCO, Deputy Prime Minister Choo emphasized the necessity, saying, "It is to create more efficient public institutions," and added, "Public institutions have public interest, but their operations must be streamlined."

Regarding concerns raised about the privatization of public institutions, he dismissed them, saying, "Privatization of railroads, electricity, gas, airports, etc., has never been considered and there are absolutely no plans to consider it in the future."

Regarding the recent foreign exchange market volatility, including the won-dollar exchange rate surpassing 1,300 won, he said, "Due to the strong dollar, the value of other major currencies is also falling, so it cannot be seen as a crisis sign unique to us," but added, "If the concentration phenomenon worsens, we will respond."

Regarding the recent announcement by the Ministry of Employment and Labor on the '52-hour workweek reform,' which caused confusion between the presidential office and the ministry after President Yoon Suk-yeol mentioned he had 'not been briefed,' Deputy Prime Minister Choo explained, "There was a slight difference in wording and interpretation," adding, "The accurate intention is to discuss with labor groups and experts to find the optimal way to increase flexibility in rigid and uniform parts." He continued, "Basically, the government recognizes the problems in the labor market and has a strong will to make it more flexible."