Hong Nam-ki: "Emergency Supply Adjustment Measures for Masks Implemented... No Price Controls" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporters Kwangho Lee and Sehee Jang] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki stated on the 7th, "To alleviate public anxiety regarding the supply of masks and hand sanitizers, we will implement strong 'emergency supply adjustment measures.'"

On the same day, Hong presided over the Economic Ministers' Meeting on the Response to the Novel Coronavirus Infection (Wuhan Pneumonia) and the Economic Vitality Measures Meeting at the Government Seoul Office, saying, "After discussing specific measures with related ministries and going through procedures such as the Cabinet meeting, we will implement these measures within next week."

Once these measures are in place, mask and hand sanitizer producers must report their daily production volume, shipment volume, and export volume, and retailers must notify the Ministry of Food and Drug Safety if they sell masks in bulk.

The government's plan is to eradicate hoarding and smuggling of masks and hand sanitizers through this system. However, there is a policy not to control prices. After the briefing, Hong told reporters, "The government will not intervene in the quantity," adding, "There was no mention of a price ceiling, and it is not a target."

He emphasized, "We will swiftly, surely, and thoroughly track and strictly handle all illegal and fraudulent acts that exploit public anxiety by holding citizens' safety hostage."

At the meeting, the government also presented short- and mid-to-long-term measures related to the recent disruptions in the supply of automobile parts.

Hong explained, "We will strengthen consultations with local governments in China to restart factories there," adding, "We are intensifying all public-private channels, including the embassy in China, completed car companies, and KOTRA, to comprehensively negotiate for the early reopening of local factories."

He continued, "While urgently operating a logistics support system, we will ensure parts are quickly imported into the country through 24-hour emergency customs clearance upon import," and "If special extended work hours are requested to expand domestic production, we will promptly approve them, and if substitute parts are urgently procured from third-country parts factories, we will support expedited customs clearance."

The government also decided to provide additional financial support to small and medium-sized enterprises (SMEs) and small business owners.

Hong said, "We will supply approximately 2 trillion won in additional policy financing to the groups expected to be affected by this situation and extend the maturity of existing loans and guarantees."

Specifically, 1.9 trillion won will be newly supplied to facilitate smooth funding for small and medium-sized enterprises and mid-sized companies. If the maturity of loans or guarantees from policy financial institutions is due within six months, it will be extended by up to one year, and principal repayment will be deferred for one year.

For small business owners and self-employed individuals, 20 billion won in management stabilization funds will be newly provided at low interest rates in the 2% range, and 100 billion won in special guarantees will also be newly supported. The scale of microfinance loans for small merchants in traditional markets will be additionally expanded by 5 billion won.

This content was produced with the assistance of AI translation services.