MoEF "Prioritizing Revitalization of People's Economy... Strengthening Price Management"

[Sejong=Asia Economy Reporter Kim Hyunjung] The government announced that it will prioritize revitalizing the livelihood economy next year by accelerating efforts to stabilize living costs such as agricultural and livestock products and public utility charges. In particular, it plans to introduce a price responsibility system by ministry and strengthen supply and demand management for key items closely related to table prices.

The Ministry of Economy and Finance reported the 2022 work plan containing these details to President Moon Jae-in on the 22nd. Six ministries including the Ministry of Economy and Finance, Ministry of Culture, Sports and Tourism, Ministry of Agriculture, Food and Rural Affairs, Ministry of Employment and Labor, Ministry of SMEs and Startups, and Financial Services Commission recently reported their work plans for next year under the theme of 'Revitalizing the Livelihood Economy.'

The Ministry of Economy and Finance expects that the improvement trend of the Korean economy will continue next year, but livelihood conditions will remain challenging due to domestic and international uncertainties. The global resurgence of COVID-19 has delayed the phased recovery of daily life, accumulating difficulties mainly for small business owners and affected industries. Amid persistent employment uncertainties and prolonged supply chain disruptions, there are also significant factors causing instability in prices for ordinary citizens.

To stabilize living costs for ordinary citizens, the government will mobilize all policy capabilities and introduce a ministry responsibility system where each ministry takes charge of prices in their respective areas. The Ministry of Agriculture, Food and Rural Affairs will monitor and manage stabilization measures for prices of agricultural and livestock products, processed foods, and dining out, while the Ministry of Trade, Industry and Energy will oversee prices of petroleum products and durable goods.

For key items closely related to table prices, supply and demand management will be strengthened and systems improved to reduce price volatility. The special provision period for the tax credit on deemed input tax for duty-free agricultural products will be extended by two years, and the volume under the vegetable price stabilization system will be expanded. Public utility charges will be frozen in the first quarter of next year, and local governments that contribute to stabilizing local public utility charges will be given financial incentives.

Additionally, the government will increase operational flexibility for stockpiled materials such as six major non-ferrous metals (aluminum, lead, copper, zinc, nickel, tin) and prioritize sales to small and medium enterprises when releasing discounted stockpiles. Special tax reductions will be expanded for gas stations converted to budget gas stations during the year.

Regarding the real estate market, measures will be taken to realize a 'downward stabilization trend in prices' by accelerating housing supply and easing the dual pricing in the jeonse (long-term lease) market.

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