[Gwanga in] "Tame Inflation"... Sejong Government Complex in the 'High Price War'

As inflation warning signs have recently reappeared, ministers and vice ministers from various government departments are scrambling to control prices. Although the government is unleashing its resources to stabilize prices, concerns are growing that the inflation rate this month could exceed expectations, rising again to the 4% range.

According to government sources on the 26th, Cho Seung-hwan, Minister of Oceans and Fisheries, plans to visit a seafood freezing warehouse located in Saha-gu, Busan, the following afternoon, an unplanned visit. This is to monitor trends in the import industry as mackerel prices have risen nearly 20% compared to a year ago. The government decided to introduce an additional 20,000 tons of mackerel under a zero tariff quota starting at the end of this month, but the industry expects the price increase to continue for the time being due to reduced catch volumes.

Another item Minister Cho is closely monitoring for supply and demand is solar salt. Production sharply declined this year due to heavy rains and typhoons, and demand surged amid growing anxiety after Japan began discharging contaminated water from Fukushima. With the kimchi-making season approaching, salt prices rose 17.3% compared to the same month last year, reaching levels comparable to gold, which made Minister Cho anxious. Earlier, on the 20th, he visited a solar salt processing company in Yongin, Gyeonggi Province, repeatedly urging restraint on price hikes. A local official at the site said, "Minister Cho repeatedly emphasized absorbing price increases as much as possible internally."

Minister Cho Seung-hwan of the Ministry of Oceans and Fisheries visited the Suhyup Gangseo Wholesale Market in Gangseo-gu, Seoul on the 29th to explain the origin labeling of seafood to merchants. Photo by Kang Jin-hyung aymsdream@

The Ministry of Agriculture, Food and Rural Affairs is also on high alert over rising sugar prices. International sugar prices and the price of raw sugar, the main ingredient, have increased by 35% and 48%, respectively, compared to a year ago. Sugar prices surged from early this year due to poor harvests caused by abnormal weather such as heatwaves and droughts in major sugarcane producing regions like Brazil, India, and Thailand. On the 24th, Kwon Jae-han, Director of Agricultural Innovation Policy at the Ministry, visited CJ CheilJedang’s Incheon Plant 1, a sugar refinery, and explained that they are considering extending the zero tariff quota on raw sugar (from 3% to 0%), which could reduce production costs. This move aims to quickly suppress concerns about sugarflation (sugar + inflation), which could impact prices in confectionery and bakery sectors.

The Ministry of Economy and Finance, responsible for prices, and the Ministry of Trade, Industry and Energy, in charge of energy, are facing similar situations. On the 24th, Kim Byung-hwan, First Vice Minister of Economy and Finance, visited Hanaro Mart in Chang-dong, Seoul, to check on agricultural and livestock product trends, while Kang Kyung-sung, Second Vice Minister of Trade, Industry and Energy, held a meeting with venture and startup companies in the new energy sector on the same day. Particularly, on the 8th of this month, Vice Minister Kang met with the petroleum industry and requested minimizing price increases.

However, perspectives on these field visits by ministers, vice ministers, and senior government officials differ. Inside the ministries, the response is that such visits allow for quick assessment and response to on-site difficulties to stabilize people’s livelihoods. However, the industry interprets these visits as messages to effectively restrain price increases. A distribution industry official said, "When a high-ranking government official visits the site and mentions concerns about price increases, it is interpreted as a signal to not raise prices. The problem is that with rising costs, just because a government official visits the site doesn’t mean product prices can be lowered."