Deputy Minister of Economy and Finance: "From Next Year, Domestic Liquor Price Stabilization Will Be Encouraged... Full Effort to Control Year-End Inflation"

Emergency Economic Vice Ministers' Meeting and Price-Related Vice Ministers' Meeting

Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, stated on the 1st, "Starting next year, we will introduce a standard sales ratio system for domestically manufactured alcoholic beverages to promote price stability of domestic alcoholic beverages."

Vice Minister Kim made these remarks during the 'Emergency Economic Vice Ministers' Meeting and Price-Related Vice Ministers' Meeting' held at the government Seoul office that morning, while reviewing each ministry's response to price stabilization and the situation related to the Serious Accidents Punishment Act. He said, "From next year, we will introduce the standard sales ratio system for domestically manufactured alcoholic beverages to reduce the tax burden on relatively higher-priced domestic alcoholic beverages compared to imported ones."

The standard sales ratio system under government review aims to deduct an amount corresponding to the standard sales ratio from the production cost (ex-factory price) when taxing domestic distilled liquors (diluted and distilled soju, whiskey, etc.), and then use the remainder as the tax base. If the standard sales ratio system is introduced, it could lead to a reduction in the ex-factory price of domestic distilled liquors. Vice Minister Kim said, "To this end, we will start the legislative notice for the related legal amendments from today, complete the necessary measures within this year, and apply them from the ex-factory shipments dated January 1 next year."

Additionally, the government plans to continuously strengthen tariff reductions on major food raw materials next year to encourage the industry to restrain some price increases. Vice Minister Kim stated, "As a result of actively promoting the supply stabilization measures for kimchi-making ingredients, the prices of 14 major kimchi ingredients fell by an average of 9.7% compared to the previous year last month, and prices of major agricultural products are gradually declining. Considering that gasoline prices also dropped by about 150 won compared to early October, the inflation rate last month is expected to slow down compared to October." However, he emphasized that since uncertainties such as international oil price volatility and weather conditions still remain, efforts to stabilize prices will be continuously strengthened.

The government also plans to monitor items, such as automobile insurance premiums, which usually undergo price adjustment discussions around the year-end and New Year period, to ensure appropriate adjustments are made with price stabilization officers for each item taking the lead. Vice Minister Kim explained, "In the case of automobile insurance, where the loss ratio has improved compared to last year, we plan to discuss win-win financial measures with the industry so that the public can feel the benefits."

Kim Byung-hwan, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the "34th Emergency Economic Vice Ministers' Meeting and 4th Price-Related Vice Ministers' Meeting" held at the Government Seoul Office in Jongno-gu, Seoul, on the morning of the 1st.

During the meeting, opinions from the small and medium-sized enterprise sector regarding the Serious Accidents Punishment Act were heard.

Vice Minister Kim diagnosed, "Over the past two years since the enforcement of the Serious Accidents Punishment Act, the government and companies have strived to establish a serious accident prevention system, but according to feedback from the field, companies have found it difficult to prepare and respond adequately, and government support measures have somewhat fallen short of expectations."

He added, "In this situation, with the application of the Serious Accidents Punishment Act to workplaces with fewer than 50 employees imminent from January next year, the field is urging for measures such as extension of the grace period and expanded support. The government is preparing comprehensive measures focused on vulnerable sectors to ensure the completion of safety and health management systems and ultimately reduce serious accidents." The government plans to announce the related comprehensive measures soon.

Vice Minister Kim also said, "I hope that the National Assembly will carefully deliberate and process the bill to postpone the application period, considering the difficulties and preparation status of small and medium-sized enterprises."