Choo Kyung-ho: "Food Price Burden Will Ease Slightly After a Month or Two"

"Artificially Suppressing Dollar Trends Alone by Korea Will Cause Side Effects"

Deputy Prime Minister for Economy Choo Kyung-ho is attending the government economic question session held at the National Assembly on the 26th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Sejong=Reporter Kwon Haeyoung] On the 26th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said regarding the government's measures such as the application of tariff quotas, "After a month or two, the prices of shopping baskets and dining tables will stabilize, and the burden will be somewhat eased."

Deputy Prime Minister Choo stated during the National Assembly's government questioning session that "Various tariff reductions, fuel tax cuts, release of stockpiles, support payments for low-income households, and energy voucher distributions are currently being implemented."

He said, "Since overseas factors rapidly impacted the domestic market, there were considerable parts that the government could not control. In particular, products like meat, garlic, and onions coming in under tariff quotas have a slight time lag and are now gradually starting to arrive. I think the burden will be somewhat eased after a month or two."

Regarding concerns that the high exchange rate, with the won-dollar rate hovering around 1300 won, is serious, he responded, "We frequently meet at the Emergency Macroeconomic and Financial Meeting to monitor the market and devise necessary countermeasures. If Korea artificially suppresses the dollar trend alone, other side effects may occur."

On the necessity of a Korea-US currency swap, he emphasized, "The US Federal Reserve has its own authority and cannot directly bring it to the table. However, at the Korea-US summit and meetings between finance ministers, we confirmed that there is capacity to closely cooperate in the foreign exchange market and to operate liquidity supply mechanisms if necessary, firmly establishing the spirit of close cooperation in emergencies."