Concerns Over Rising Inflation... Government Increases Egg Imports and Holds Large-Scale Discount Events (Update)

Deputy Minister Lee Eokwon Presides Over the 14th Vice Ministers' Meeting on Prices and the 20th Policy Review Meeting

Lee Eok-won, First Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the 'Price-related Vice Ministers Meeting and Policy Review Meeting' held on the 2nd at the Government Seoul Office in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Kim Hyunjung] As the inflation rate has recorded over 2% for two consecutive months, the government is taking a more proactive approach to price management by increasing imports of certain price-rising items and supporting large-scale discount events.

Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, announced this on the morning of the 2nd at the 14th Vice Ministers' Meeting on Price and the 20th Policy Review Meeting held at the Gwanghwamun Hall, 2nd floor of the Government Seoul Office.

First, the government plans to import 50 million plus α eggs in June, which is 10 million more than the previous month, and extend the emergency tariff quota support measure, originally scheduled to end at the end of this month, until the end of the year. For rice, the government will supply stockpiled quantities until the autumn harvest season to stabilize prices, and will additionally supply 20,000 tons of rice for processing purposes such as Makgeolli and Nurungji.

Along with this, to enhance responsiveness to fluctuations in international raw material prices, the government will promote the release of stockpiled quantities and financial support to ease corporate burdens. For international grains, the interest rate on raw material purchase funds, currently 2.0%, will be lowered by 0.2 percentage points to reduce the burden on companies securing feed raw materials.

The Public Procurement Service will continue discounted releases of non-ferrous metals for the fourth consecutive month. In particular, in June, the release volume will be significantly expanded to about 30,000 tons, and the sales discount rates for tin and zinc will be increased by 1 percentage point. For credit purchases, the limit per company will be raised by 1 billion KRW to 3 billion KRW, and the rental sales period will be extended by 3 months to 6 months. Regarding steel, through cooperation with steelmakers, production of rebar in the second quarter will increase by 22% compared to the previous quarter, and thick plates by 7.8%. The government plans to increase domestic supply by converting export volumes to domestic sales and adjusting production items.

For petroleum products, the government will strengthen monitoring of international oil price trends and distribution order, and prepare supply and demand measures through contingency plans in case of emergencies.

The government is also preparing for service price increases to ease the burden of living expenses. Public utility charges such as electricity and gas fees will be managed stably considering the overall inflation situation. To prevent cost burdens in small and medium processed food and dining industries from leading to product price increases, the interest rate on raw material purchase fund loans (currently 2.0%) will be further lowered by 0.2 percentage points, and an increase in the support scale (144 billion KRW) is also under consideration.

Additionally, the government will hold large-scale sales events. From the 24th of this month to the 11th of next month, the 'Korea Together Sale' will be held, offering discounts on various items such as agricultural, livestock, and fishery products, home appliances, and general consumer goods. In particular, the agricultural and livestock product discount coupon project will continue in the second half of the year, and more than five fishery product discount events will be promoted during the second half as well.

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