[Asia Economy Sejong=Reporter Kim Hyewon] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho announced on the 4th, "We will completely improve the subsidy management system to prevent the misuse of national treasury subsidies, which have surged to around 100 trillion won annually."
At the first emergency economic ministers' meeting of the new year, Deputy Prime Minister Choo said, "We will amend the Subsidy Act to significantly expand verification and accounting audits through external organizations and strengthen joint inspections by related ministries."
He added, "We will establish and operate a joint subsidy execution inspection task force among related ministries and organize the management system by registering all private subsidy operators in the e-Naradoom system."
Regarding this year's rapid fiscal execution plan, he explained, "The central government budget will pursue rapid execution of over 65%, the highest level ever, in the first half of this year, and local government finances and local education finances will also execute 60.5% and 65%, respectively, in the first half." He added, "Above all, since employment conditions are expected to be difficult early in the year, we will advance the recruitment and hiring periods as much as possible to rapidly execute over 70% of the job budget under management within the first half."
For public institution investments, the policy is to strengthen fiscal soundness while promoting rapid and efficient investment execution. Deputy Prime Minister Choo said, "To respond to the difficult economic conditions, 27 major public institutions will pursue a total investment of 63.3 trillion won this year, and especially in the first half, they will execute an early record-high scale of 55% (34.8 trillion won)." He added, "We will raise the public institution preliminary feasibility study threshold to 200 billion won to enhance the autonomy of public institutions and closely monitor investment execution status monthly."
On the same day, the government announced measures to stabilize livelihoods in preparation for the earlier-than-usual Lunar New Year holiday. Deputy Prime Minister Choo diagnosed, "Overall, prices are expected to show a clear downward stabilization trend this year, but high inflation will continue for the time being due to persistent upward pressure. In particular, January has seasonal upward factors such as rising prices of agricultural, livestock, and fishery products, and with the early Lunar New Year holiday approaching, increased peak season demand may intensify upward pressure." He also noted, "With the increase in electricity rates and the resulting heating cost burden, as well as rising interest burdens due to interest rate hikes, difficulties during winter may increase, especially for vulnerable groups."
Accordingly, the government will supply a record-high 208,000 tons of 16 major seasonal products such as apples, pears, and pork to keep average prices lower than last year, and provide a total of 30 billion won in discounts for agricultural, livestock, and fishery products. Despite this year's electricity rate increase, the government will greatly expand rate discounts to minimize the burden on vulnerable groups, and the winter energy voucher unit price will also be further raised to 152,000 won (previously 145,000 won). Various convenience supports will be strengthened, including waiving highway tolls during the Lunar New Year holiday period, including substitute holidays.
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