Vice Minister Ki Jae: "Price Stability Top Priority Next Year... Lunar New Year Livelihood Measures to Be Announced Next Week"

"High Inflation Uncertainty Next Year... Responding with Departmental Responsibility System"
"Over 60% of 237 Key Economic Tasks to be Promoted in Q1"

Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, presides over the 42nd Policy Inspection Meeting and the 37th Vice Minister Meeting on Prices at the Government Seoul Office in Gwanghwamun, Seoul, on the 31st, delivering opening remarks. (Photo by Ministry of Economy and Finance)

[Sejong=Asia Economy Reporter Moon Chaeseok] Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, stated on the 31st, "Considering the difficult price conditions, we will maintain special vigilance and prioritize stabilizing living prices for the common people as the top policy task next year, and respond with full force centered on the price responsibility system of relevant ministries."

On the morning of the same day, Vice Minister Lee presided over the 42nd Policy Inspection Meeting and the 37th Price-Related Vice Ministers' Meeting at the Government Seoul Office, saying, "The government recognizes that proactive response is most important, and after discussions with relevant ministries, we will finalize and announce the plan in the first week of January next year." He added, "We will maintain a seamless quarantine and medical response system during the holiday period and strengthen safety response systems focusing on areas closely related to citizens' lives such as smishing damage, disasters, and fires. We will promote stabilization of living prices by expanding the supply of 16 essential goods and inject warmth into every corner by early payment of earned income tax credits and child tax credits."

On the same day, Statistics Korea announced that the consumer price index rose by 2.5% this year, and by 3.7% compared to the same month last year for this month. Vice Minister Lee diagnosed that the causes of price increases were the sharp rise in energy and raw material prices, supply bottlenecks, and demand recovery due to economic reopening. Regarding this, he explained, "Next year's consumer prices will show a high-low-high pattern with upward pressure continuing in the first half due to strong international oil prices and base effects, gradually slowing down later," but also noted, "There is high uncertainty due to the spread of COVID-19, the development of the Omicron variant, and global supply chain disruptions."

He said that each ministry will actively implement the ministry responsibility system by placing price stabilization as a policy priority and responding to price increase factors such as stockpiling major goods. He emphasized, "We will establish and strengthen monitoring systems for each ministry's jurisdiction and use available means such as stockpiling and imports by item to proactively resolve supply-demand imbalances. We will communicate with industries to actively prepare support measures before price increases and each ministry will also prepare structural response measures such as improving distribution structures."

Regarding next year's economic policy direction, more than 60% of the 237 major core tasks will be focused on from the first quarter. Vice Minister Lee said, "We will implement key economic and livelihood tasks such as support for small business owners, economic response, and job projects as early as possible from the beginning of the year," and added, "Tasks requiring follow-up measures such as the establishment of a national roadmap for vehicle semiconductors scheduled for March next year will be prepared in coordination with relevant ministries for sequential announcements according to the schedule."

For tasks requiring legislation such as the enactment of the Digital Inclusion Act, communication with the National Assembly will be strengthened for early legislation, and for mid- to long-term tasks such as carbon neutrality, population, and regional economy, institutional foundations will be established from early next year. Regarding the hydrogen economy, a clean hydrogen power generation obligation system will be introduced, and hydrogen utilization will be expanded comprehensively by diversifying hydrogen mobility to buses, ships, and trams.

Vice Minister Lee said, "We will increase hydrogen demand from 220,000 tons (t) as of last year to 3.9 million tons by 2030 and 27.9 million tons by 2050," adding, "The increased demand will be met by increasing domestic clean hydrogen production." He continued, "We will establish green hydrogen production bases of 250,000 tons by 2030 and 3 million tons by 2050, and reduce hydrogen production costs to 3,500 won per kg by 2030 and 2,500 won by 2050, gradually raising the clean hydrogen self-sufficiency rate to 60%."

The pace of talent development will also be accelerated. Vice Minister Lee added, "By 2030, we will establish 20 hydrogen departments and 5 hydrogen convergence graduate schools to produce field-specialized practical personnel and master's and doctoral-level experts, and by 2040, we will foster 1,000 hydrogen specialized companies to create an innovative ecosystem for the entire hydrogen economy."

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