Ahead of Chuseok, 'High Inflation Emergency'... Deputy Minister of Economy and Finance: "All Available Measures Mobilized"

The 22nd Price-Related Vice Ministers' Meeting

Lee Eok-yeon, First Vice Minister of the Ministry of Economy and Finance, is presiding over the "27th Innovation Growth Strategy Review Meeting, COVID-19 Policy Review Meeting, Korean New Deal Review Task Force Meeting, and 22nd Price-Related Vice Ministers' Meeting" at the Government Seoul Office Building on August 13, 2021. Photo by Yonhap News

[Sejong=Asia Economy Reporter Son Seon-hee] With the Chuseok holiday just over a month away and high inflation continuing, the government has taken extraordinary measures such as timely release of stockpiled goods and expansion of import volumes.

On the morning of the 13th, Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, chaired a price-related vice ministerial meeting at the Government Seoul Office and said, "To quickly stabilize the prices of agricultural, livestock, and fishery products before Chuseok, we will mobilize all available means, including expanding stockpiles and timely release to increase the supply scale of Chuseok seasonal products for early supply, as well as expanding import volumes."

Last month, prices of agricultural, livestock, and fishery products rose 9.6% compared to the same month last year due to avian influenza (AI), heatwaves, and increased consumption during the vacation season. However, Vice Minister Lee said, "Prices of agricultural products such as cabbage, radish, and green onions have stabilized significantly due to increased supply with the arrival of the harvest season and favorable crop conditions," adding, "If weather conditions remain favorable, the recent price stability is expected to continue through Chuseok."

Prices of major holiday seasonal fruits such as apples and pears continue to soar due to poor crop conditions. Regarding this, Vice Minister Lee predicted, "Early varieties are being shipped, causing prices to fall, and with an increase in cultivation area, Chuseok prices are expected to be lower than last year." He also added, "Leafy vegetables such as spinach are experiencing strong prices due to the heatwave, but since their growing period is short, about 30 to 40 days, supply and demand conditions are expected to improve quickly if the weather improves."

As of the previous day, egg prices (based on 30 eggs) recorded 6,946 won, entering the 6,000 won range for the first time in about seven months since January 27. Vice Minister Lee said, "We will smoothly import 200 million eggs in August and September and increase the proportion of direct supply to consumers through large supermarkets to over half," adding, "We will continue to strengthen efforts to stabilize prices by operating on-site inspection teams to closely monitor whether the price reduction trend at the production stage, due to an increase in laying hens, is reflected in distribution and sales stages."

Vice Minister Lee stated, "Chuseok is the time of year when consumers feel the highest impact of consumer prices. Even if the annual inflation rate is not high, if prices are high during Chuseok, the perceived price level by the public will inevitably be high," and added, "We will closely monitor the price situation on a weekly basis until Chuseok and immediately devise supplementary measures if necessary to ensure that prices of major agricultural, livestock, and fishery products, including seasonal goods, remain lower than last year."

Meanwhile, regarding the shipbuilding industry, which has experienced a boom this year with the best performance in 13 years, Vice Minister Lee said, "We will support the smooth supply of manpower in the shipbuilding industry without disruption, including the return of skilled workers and the influx of new personnel." The government plans to focus on ▲ development of zero-carbon eco-friendly ship technologies such as hydrogen ships ▲ securing self-reliant technology for LNG ship core components ▲ and the Smart K-Yard project for digitalization of the shipbuilding process.

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