[Chuseok Livelihood Measures] Prices of Seasonal Goods to Be 5% Lower Than Last Year... Record 67 Billion Won Invested in Discount Events

Release More Government Stockpiles and Increase Imports
Agricultural and Livestock Products Up to 60% Discount... Seafood Discounted an Additional 10%

The government is expanding the supply of stockpiled goods and imported quantities for essential items ahead of the Chuseok holiday, and is conducting a large-scale discount event by investing a record 67 billion won. As inflation, which had maintained a 2% increase in June and July this year, became more volatile due to rising international oil prices and heavy rains, the government is taking measures to stabilize prices through the Chuseok livelihood stabilization plan.

On the 31st, the government held the 19th Emergency Economic and Livelihood Meeting chaired by President Yoon Seok-yeol and announced the 'Chuseok Livelihood Stabilization Measures' based on these contents.

Yoon In-dae, Director of the Economic Policy Bureau at the Ministry of Economy and Finance, explained, "International oil prices have become unstable over the past month, causing global inflation to become unstable again. In addition, prices, especially for agricultural products, have risen due to heavy rains and typhoons, and we expect the consumer price inflation rate to exceed 3% in August and September. The main focus of this Chuseok plan is price control, aiming to manage the prices of 20 major essential items at a level 5% lower than last year."

According to the government, prices of vegetables, which had risen due to recent heatwaves and heavy rains, have fallen, and prices of livestock products have stabilized. Currently, the average prices of 20 major Chuseok essential items such as cabbage, beef, and pollock are 3.4% lower than last year. During the same period, prices of cabbage and radish fell by 19.5% and 22.8%, respectively, and beef prices dropped by more than 10%. However, prices of apples and chicken rose by 11.6% and 11.9%, respectively. Pollock and mackerel also showed strength, with prices increasing by 16.6% and 18.8%, respectively. The government plans to further lower the average price of the 20 major essential items to about -5% compared to last Chuseok through active supply and demand management.

Releasing More Government Stockpiles and Increasing Imports

First, the government will increase the supply of stockpiled and contract-cultivated quantities, as well as imports, focusing on vegetables with seasonal instability and fruits whose prices have recently risen. Contract-cultivated quantities of cabbage and radish will be supplied at 56,000 tons and 49,000 tons, respectively, and the 'Highland Cabbage and Radish Joint Crop Management Team' will be operated continuously to closely monitor growth and pest control situations and respond promptly if necessary. For apples and pears, the supply of contract shipments through NongHyup (15,000 tons and 13,000 tons) will be increased more than threefold compared to normal times to ensure concentrated supply. Pineapples and mangoes will be exempted from tariffs to secure sufficient quantities for holiday fruit gift sets.

For livestock products, to stabilize prices, the government will import the maximum possible quantities of pork and chicken under tariff quota amounts of 15,000 tons and 30,000 tons, respectively, before Chuseok. To expand egg supply during the peak season, 3 million eggs intended for processing from poultry cooperative shipments will be converted to market supply.

For seafood, supply will be expanded through releasing stockpiles, focusing on some species such as mackerel and squid, which have had poor catches and high prices this year. The government stockpile of mackerel, which was 305 tons last Chuseok, will be increased to 4.67 million tons this year, and stockpile releases and imports of pollock and squid will be expanded. Although the recent shortage of solar salt has eased, an additional 400 tons will be released before Chuseok for proactive supply management.

Up to 60% Discount on Agricultural and Livestock Products... Additional 10% Discount on Seafood

Along with expanding supply, the government will invest a record 67 billion won to conduct a large-scale discount event for four weeks until before Chuseok. Through government discount support and discounts by marts and NongHyup, purchases of items such as cabbage, radish, apples, pears, and onions will be discounted by 30-40%. For example, when purchasing one head of cabbage, the government supports a 20% discount, and if the mart adds its own discount (10-20%), consumers can buy it 30-40% cheaper. For livestock products, large marts will offer pork belly and neck meat at 20% lower prices, and Korean beef cuts and grilled meat at up to 50% lower prices.

For seafood, the government plans to stabilize prices and promote consumption simultaneously through discounts. By investing a record 144 billion won in consumption activation budget, discounts of up to 60% will be supported for major essential items such as pollock and mackerel. Starting next month, the per-person discount limit will be increased from 10,000 won to 20,000 won, and the government-supported discount rate will be raised from 20% to 30%.

The government will provide additional discount benefits when purchasing agricultural, livestock, and seafood products at traditional markets. When using discount support for agricultural, livestock, and seafood products in traditional markets, the per-person limit of 20,000 won will be increased to 30,000 won for agricultural and livestock products and 40,000 won for seafood. The discount rate will be raised from 20% to 30%.

To reduce consumers' burden of purchasing gift sets, 80,000 practical fruit gift packages, which are up to 20% cheaper through NongHyup contract quantities, will be supplied?20,000 more sets than last year. The supply of Korean beef gift sets will also be increased by 12.8% to 511 tons compared to last year.

To enhance the effectiveness of these measures, the government will conduct daily monitoring of price and supply-demand trends through the 'Inter-Ministerial Price Stabilization Task Force' and take immediate supplementary actions if necessary. To ensure smooth supply of essential items, temporary permission will be granted for freight trucks transporting essential goods to major urban areas before and after the Chuseok holiday, and additional temporary workers will be deployed for delivery drivers. Inspections at customs will be strengthened for heavy metals and pesticides, focusing on processed foods and agricultural, livestock, and seafood products for ancestral rites and gifts to ensure the safety of imported foods. In addition, special crackdowns on illegal distribution activities such as violations of origin labeling for imported agricultural, livestock, and seafood products will be conducted.