"President Lee Points to 'Price Gouging' as Major Obstacle to Local Economy
Calls for Legal and Regulatory Crackdown,
Warns of 'Devastating Consequences' from Pursuing Trivial Profits"
"Urges Thorough Supervision of Saemaeul Geumgo
Empha
President Lee Jaemyung has identified "price gouging" as a major factor hindering the revitalization of local economies and has instructed officials to devise legal and regulatory measures to crack down on it. President Lee also called for special attention to the management and supervision of Saemaeul Geumgo, which has been criticized for being in a regulatory blind spot.
On September 2, President Lee held a Cabinet meeting at the Yongsan presidential office and said, "There are stories about price gouging in Busan. The biggest obstacle to revitalizing local tourism is occasional incidents caused by self-employed business owners. Is there no way to crack down on price gouging?" He appeared to be referring to a recent case in which a customer paid 70,000 won for a plate of sea cucumber at the Busan hairtail market. President Lee added, "It seems that Gangwon Province has also suffered significant damage for similar reasons," and warned, "Trying to gain small profits from trivial matters can result in catastrophic losses."
In response, Minister of the Interior and Safety Yoon Hojoong said, "We need to examine whether it is legally possible," and added, "We will try to encourage voluntary regulation by merchant associations and business districts." However, President Lee replied, "The damage to the public is too great to leave this as a matter of voluntary regulation. This is an issue that needs to be studied," and emphasized, "The role of the tourism industry is significant in revitalizing local economies, so I ask the Minister of Culture, Sports and Tourism to pay special attention and conduct research on this matter."
President Lee also urged thorough management and supervision of Saemaeul Geumgo to ensure it truly benefits the local economy. He pointed out, "Saemaeul Geumgo seems to be in a regulatory blind spot," and questioned, "There are opinions that the responsibility for supervision should be transferred to the Financial Services Commission. Since the Ministry of the Interior and Safety is managing it, isn't it delegated to local governments?" President Lee stressed, "It is not enough to merely say that management and supervision are being conducted; operations must actually benefit the local economy."
In response, Minister Yoon Hojoong said, "Since two years ago, as bad loans have occurred, the Financial Services Commission and the Ministry of the Interior and Safety have been jointly guiding financial matters." President Lee again urged, "Please pay special attention to this issue."
Saemaeul Geumgo experienced turmoil in 2023, including a large-scale bank run due to defaults in real estate project financing. Last year, it recorded a net loss of more than 1.7 trillion won, the largest since its establishment.
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