Choo Kyung-ho: "Inflation Rate Exceeded 3% in August-September, Stabilizing from October"

Hanwha Ocean Visiting Press Corps Meeting
"Prices to Return to 2% Inflation from Oct to Dec"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho forecasted on the 4th that "due to the recent rise in international oil prices, the consumer price inflation rate for August and September will exceed 3%."

Before visiting Hanwha Ocean in Geoje in the afternoon, Deputy Prime Minister Choo held a luncheon meeting with reporters and made this statement. He said, "The concentrated heavy rains, typhoons, and heatwaves in July and August negatively affected the harvest of some fruits and vegetables, causing prices of apples, pears, and tomatoes to rise significantly," adding, "With increased demand during the Chuseok peak season, inflation is expected to be in the low 3% range."

He further stated, "After the peak season this month, prices will stabilize quickly, and by October to December at the latest, inflation will return to the 2% range." Overall, the analysis suggests that inflation will rise to the low 3% range around Chuseok in August and September, then gradually enter a stabilization phase.

Regarding additional measures to strengthen exports, he explained, "Exports have been significantly contracted due to various external conditions and unfavorable economic trends, especially with the downturn in the semiconductor and IT sectors, resulting in a prolonged negative record. However, the positive trend is that the rate of decline is decreasing, and particularly from this month onward, the drop in semiconductor exports will lessen."

On the 4th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho visited Hanwha Ocean in Geoje to inspect the shipbuilding production and export sites. During the visit, he had lunch with accompanying reporters at a sashimi restaurant in Geoje City to promote the consumption of our seafood products.

He added, "According to projections from the Ministry of Trade, Industry and Energy and others, exports are expected to enter positive territory around October," emphasizing, "We will continue to devise support measures as needed for exports going forward."

Regarding the tax revenue re-estimation, Deputy Prime Minister Choo said, "We planned to conduct the re-estimation earlier this month, and once the work is completed soon, it will be disclosed. Since it was mentioned that surplus funds and reserve funds will be utilized, please understand that this will be carried out comprehensively." However, he was cautious, stating, "Even with the re-estimation, there may be some differences between the actual year-end results and the re-estimation, but it is expected that the shortfall will increase rather than decrease."

On concerns about reduced consumption of Korean seafood due to the Japanese government's discharge of contaminated water from Fukushima, he said, "Recent statistics show that despite these anxieties, seafood sales have increased over the past week," and added, "Political actions that provoke anxiety should be restrained, and we need to gather wisdom on how to stabilize the genuine concerns of the public."

He also mentioned, "Considering that the 64 billion won seafood consumption promotion budget for this year has been rapidly depleted recently, we have prepared a supplementary budget of about 80 billion won for consumption promotion, which we believe will greatly help in the recovery of consumption."

Finally, regarding support for the shipbuilding industry, Deputy Prime Minister Choo said, "During the mid-2010s, the shipbuilding industry faced a severe recession with very difficult orders, but in the past three years, ship orders have increased, leading to a boom again," adding, "The government will actively support the shipbuilding industry so that it can play an important role in export growth and revitalizing the domestic economy."