Yoon: "Adjust the pace of energy price hikes... Telecom and finance sectors must also share the burden"

President Yoon Chairs the 13th Emergency Economic and Livelihood Meeting
Tells Ministers "Keep Science-Based Policies in Mind Over Populism"

[Asia Economy Reporter Ki-min Lee] On the 15th, President Yoon Suk-yeol stated, "Energy prices such as electricity and gas will be adjusted in terms of the extent and speed of price increases to minimize the burden on low-income households, and support for vulnerable groups will be strengthened." He also urged companies in the financial and telecommunications sectors to voluntarily participate in sharing the pain to stabilize prices.

At the 13th Emergency Economic and Livelihood Meeting, which he presided over live from the Yongsan Presidential Office that morning, President Yoon said, "Public utility charges managed by the central government, such as roads, railways, and postal services, will be operated with a freeze policy as much as possible during the first half of the year, and I ask local governments to also work together to stabilize local public utility charges as a pillar of livelihood," emphasizing this point.

In his opening remarks, President Yoon first explained the progress of livelihood measures through the Emergency Economic and Livelihood Meeting. He said, "Since July last year, to respond to the triple crisis of high inflation, high interest rates, and high exchange rates, I have personally chaired this meeting and held 12 sessions, implementing various livelihood measures. In response to the global rise in oil and grain prices, we lowered the fuel tax and significantly expanded discounts on agricultural, livestock, and fishery products, creating and executing various measures to alleviate living expenses burdens," he mentioned.

He continued, "To reduce the burden on borrowers struggling with the steep rise in interest rates, we also implemented financial livelihood stabilization measures exceeding 125 trillion won," adding, "Furthermore, to ensure housing stability, we expanded the supply of public rental housing and promoted rent freezes."

[Image source=Yonhap News]

President Yoon also stated, "Although the upward trend in prices and interest rates has slowed due to various policy efforts, the difficulties of vulnerable groups and low-income households remain due to the effects of the previous steep increases," and emphasized the need to seek support measures, saying, "Especially, with the significant increase in heating costs during the winter and the planned increases in public utility charges such as transportation, the difficulties for the people have intensified."

While emphasizing the government's policy of freezing public utility charges in the first half of the year, adjusting the extent and speed of energy price increases, supporting vulnerable groups, and local governments' efforts to stabilize local public utility charges, he also requested pain-sharing from the telecommunications and financial sectors.

President Yoon said, "The telecommunications and financial sectors have a strong public goods nature and are government-licensed businesses maintaining an oligopolistic state," adding, "Since they greatly affect the financially struggling low-income households, I believe that alongside government efforts to improve systems, the industry should voluntarily participate in sharing the pain to stabilize prices."

He also instructed ministers, "Please think day and night about how to reduce the burden on low-income and vulnerable groups," and "I ask that not only the central government but also local governments and private companies gather strength and wisdom to overcome difficulties together."

Furthermore, he emphasized, "It clearly shows that when government policies are based on ideology and populism rather than science, the people suffer," and said, "We must always keep in mind governance based on science and policies centered on livelihoods and the field. Recently, I have been visiting regions and industrial sites, and I urge ministers not to miss the voices of the field and the people and to listen more carefully."