Hong Nam-ki "Full Effort for Price Stability... Decision on Extension of Small Business Loan Maturity Next Month"

Presiding Over the Emergency Economic Central Countermeasures Headquarters Meeting

Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki is speaking while presiding over the 54th Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 10th. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Sejong=Reporter Kim Hyewon] The government is making price stabilization its top policy priority and is putting all efforts into curbing inflation. Follow-up measures such as extending the fuel tax reduction period are expected.

On the 10th, Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, held an emergency central economic countermeasure meeting at the government Seoul office and stated, "The government will deploy all policy capabilities to stabilize consumer living prices in February."

The Ministry of Economy and Finance diagnosed that consumer price upward pressure is accelerating due to international oil prices exceeding $90, supply-side factors such as global supply chain disruptions, and demand-driven factors including domestic demand recovery.

Deputy Prime Minister Hong said, "In particular, to prevent illegal or excessive price hikes such as price collusion riding the wave in processed foods and dining out prices, inter-ministerial inspections including the Fair Trade Commission will be strengthened this month, along with market monitoring efforts such as the announcement of prices for 12 dining-out items." For agricultural, livestock, and fishery products, the government plans to intensify responses focusing on items with recent price increases and supply-demand instability.

Hong emphasized, "Our economy is experiencing increased volatility in domestic and international markets, with expanding uncertainties in the economy, prices, and finance. Stabilizing domestic prices and managing economic risks are among the most important tasks in the first quarter."

In this regard, on the 11th, heads of fiscal, monetary, and financial authorities including the Ministry of Economy and Finance, the Bank of Korea, and the Financial Services Commission will meet for an 'Expanded Macroeconomic Financial Meeting' to strengthen situation awareness and policy coordination.

Hong explained, "We intend to discuss risk factor checks, policy coordination, correction of financial imbalances and market stabilization, the ripple effects on the real economy, trends in the bond market including the government bond market, and foreign exchange market conditions, as well as emergency response plans in case of worsening situations in Ukraine." He added, "Regarding the extension of the maturity extension and repayment deferral measures for small business loans, which expire at the end of March, and the extension of the designation of special employment support sectors, also expiring at the end of March, we will promptly conduct a comprehensive review of various situations and announce the policy next month."

Deputy Prime Minister Hong also announced plans for focused support for small and medium-sized enterprises (SMEs), stating, "We will pilot the delivery price linkage system through standard contracts in the first half of the year." SMEs have demanded the introduction of a delivery price linkage system that mandates raising delivery prices when major raw material prices rise by a certain percentage or more. Hong said, "Regarding raw material supply for SMEs, we will strengthen financial, tax, logistics, and procurement support including import substitution, financial and tax support for domestic production facility investment, and expansion of stockpiling and discounted release of non-ferrous and rare metals."

Meanwhile, the government will launch the 4th Population Policy Task Force (TF) within this month to respond to aging and ultra-low birth rates. The TF plans to develop response measures in four major areas: expanding and reinforcing the working-age population, enhancing adaptability to a shrinking society, preparing for an aging society, and responding to ultra-low birth rates.

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