"Containing Fruit and Vegetable Prices"... 11 Trillion Won Invested for Price Stabilization

Full Effort for Early Stabilization of 2% Inflation Rate
Monitoring Upward Price Pressure from Red Sea Route Disruption

The government will invest 11 trillion won this year to curb the rising prices of fruits, vegetables, and other goods that have recently surged. It also aims to closely monitor the impact of the disruption of the Red Sea shipping route on upward price pressures caused by energy supply shortages and increased logistics costs, accelerating efforts to stabilize inflation in the 2% range early.

Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, is attending the Emergency Economic Vice Ministers' Meeting and the Price-Related Vice Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 5th, making recent remarks on prices. Photo by Jo Yong-jun jun21@

On the 5th, Kim Byung-hwan, the 1st Vice Minister of the Ministry of Economy and Finance, presided over an emergency economic vice ministerial meeting combined with a price-related vice ministerial meeting at the Government Seoul Office, stating, "We will concentrate all policy capabilities to ensure that the economic recovery spreads throughout the livelihood economy and continue the whole-of-government response system to achieve early entry into the 2% inflation range within the first half of the year."

Vice Minister Kim said, "We plan to support a budget of 11 trillion won this year to stabilize prices and ease cost burdens." As part of this, starting from the 4th, discount support began for a total of 13 items, including fruits and vegetables, which had experienced significant price instability, and 7 billion won in tax-exempt fuel subsidies will be invested in horticultural facility crops.

The national scholarship budget for universities has also been expanded from 300 billion won last year to 350 billion won this year. Ahead of the Lunar New Year holiday starting in the second week of next month, a 'Lunar New Year Livelihood Stabilization Plan' to reduce price burdens will be announced within this month.

At the meeting, measures to respond to price pressures due to escalating geopolitical tensions in the Red Sea region were also discussed. Vice Minister Kim stated, "Given recent concerns about logistics impacts due to attacks on civilian vessels by Yemeni rebels near the Red Sea, we plan to provide separate shipping space for small and medium-sized enterprises using European routes and additionally supply temporary container storage locations."

Since the end of last year, the Houthi Islamic rebels in Yemen have indiscriminately attacked civilian merchant ships passing through the Red Sea, intensifying fears of a logistics crisis. Due to threats from the Houthi rebels, global shipping companies that used to pass through the Suez Canal route are choosing detours, resulting in transport delays and increased logistics costs, which the government is closely monitoring.

The Suez Canal?Red Sea route, a key route connecting Europe and Asia, handles about 30% of the world's container ship cargo volume and 10?15% of bulk cargo volume such as crude oil and natural gas. If ships cannot pass through the Red Sea and must detour around the African continent, the transport time reportedly increases by about 7 to 10 days one way.

Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, is delivering opening remarks at the Emergency Economic Vice Ministers' Meeting and Price-Related Vice Ministers' Meeting held on the 22nd at the Government Seoul Office in Jongno-gu, Seoul. Photo by Jo Yong-jun jun21@

Vice Minister Kim added, "We will proactively prepare support measures to cope with disruptions in the global logistics supply chain," and "Through a joint public-private emergency response team, we will continuously receive difficulties from national shipping companies and cargo owners, and operate an unfair freight rate reporting center to respond to rapid freight rate increases."