[Exclusive] [Exclusive] Yoon to Hold 'Emergency Economic Livelihood Meeting' Three Days After Inflation Shock Remarks

First Meeting on the Morning of the 8th... Directive for All Ministers of Economic Related Ministries to Attend, "Please Convey Voices from the Field"

[Image source=Yonhap News]

[Asia Economy Reporter Bae Kyunghwan] President Yoon Suk-yeol will preside over the first 'Emergency Economic Livelihood Meeting' on the morning of the 8th. This comes just three days after he announced at the Cabinet meeting on the 5th that he would hold weekly Emergency Economic Livelihood Meetings, saying he would "directly oversee livelihood issues." As it is the first meeting, he has instructed the attendance of not only the Chief Secretary for Economic Affairs but also all ministers of economic-related ministries. It has been confirmed that President Yoon also gave prior instructions to "convey the voices from the field."

On the 7th, a senior official from the Presidential Office stated, "Following President Yoon's remarks on the price shock at the last Cabinet meeting, there was continuous opinion that the Emergency Economic Livelihood Meeting should be held promptly to check current issues first, so it was decided to hold the first meeting as early as possible," adding, "Each ministry has been given a common message such as preparing agenda items."

The first 'Emergency Economic Livelihood Meeting' held on the morning of the 8th will be attended by President Yoon, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, Chief Secretary for Economic Affairs Choi Sang-mok, as well as ministers from the Ministry of Agriculture, Food and Rural Affairs; Ministry of Trade, Industry and Energy; Ministry of Employment and Labor; Ministry of Land, Infrastructure and Transport; Ministry of Oceans and Fisheries; and the Office for Government Policy Coordination, among other economic-related ministries. A senior government official attending the meeting explained, "Each ministry was instructed to bring issues related to prices and livelihoods," and added, "It will be a place where ministries openly discuss livelihood issues, share them with each other, and try to come up with joint solutions."

During the meeting, there will likely be time to review management measures for soaring prices that are difficult to predict the peak of, as well as to check price trends and forecasts for energy and raw materials. Since the purpose of the 'Emergency Economic Livelihood Meeting' is to focus on livelihood-related issues rather than external economic matters such as export weakening, management plans for petroleum products and agricultural, livestock, and fishery food products?areas that drive price increases and have a high impact on people's daily lives?are also expected to be discussed.

Details of the high-level ruling party-government council held on the 6th are also expected to be addressed. Although the government has introduced related price management measures, since the public still feels the impact of rising prices, the ruling party and government plan to consider response measures they can jointly implement. At that time, the ruling party and government agreed to accelerate the execution of the second supplementary budget aimed at supporting low-income and vulnerable groups. In particular, emergency livelihood stabilization funds and energy vouchers for low-income groups, as well as support projects for corporate taxi and bus drivers, will be promptly carried out. Additional livelihood stabilization measures, including preemptive preparations for the Chuseok holiday livelihood measures in August, will also be pursued.

In addition, there is a possibility that detailed plans regarding the sale of public institution assets, recently ordered by President Yoon, will be discussed. Since the government is holding the '2022 National Fiscal Strategy Meeting' today and has set 'fiscal innovation' as the core direction for national fiscal management, there is a judgment that prompt follow-up measures are necessary. In fact, President Yoon said, "As I have always emphasized, the more difficult the economy becomes, the harder it is for socially vulnerable groups," and added, "To help the truly socially vulnerable and vulnerable groups overcome this difficult economic crisis well, we must tighten the public sector and use the funds created to provide stronger support to these groups." The calculation is that funds generated from public sector tightening can also be used to support livelihoods.

Within the Presidential Office, the background for President Yoon's focus on the 'Emergency Economic Livelihood Meeting' is seen as a sense of crisis that if soaring prices and other issues are not properly controlled, the operation of the government itself may become difficult. There is also an interpretation that the recent simultaneous decline in approval ratings for President Yoon and the People Power Party is a preliminary sign. Another Presidential Office official said, "Since this meeting was prepared with the intention of directly overseeing livelihoods amid ongoing recent controversies centered on the Presidential Office, it will be an opportunity to handle more detailed information and realistic alternatives, different from the ruling party-government council and the Emergency Economic Ministers' Meeting, enabling related ministries to respond quickly with follow-up actions."