Lee Okwon, Deputy Minister of Economy and Finance, "Requesting the Dining Industry to Refrain from Price Increases... Considering Extension of Fuel Tax Reduction"

MoEF Holds the 5th Vice Ministers' Meeting on Price Stability

Lee Eok-won, First Vice Minister of the Ministry of Economy and Finance, is delivering opening remarks at the '5th Vice Ministers' Meeting on Prices' held on the 18th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Sejong=Reporter Kwon Haeyoung] As processed food and dining-out prices soar, the government is requesting the industry to refrain from raising prices and encouraging the staggered timing of any increases. With high oil prices persisting, the government is considering extending the fuel tax reduction measure, which is set to end in April, and will raise the special tax reduction rate by 10 percentage points for gas stations converting to budget-friendly gas stations.

Lee Eokwon, the 1st Vice Minister of the Ministry of Economy and Finance, discussed these measures at the '5th Vice Ministers' Meeting on Price Stability' held at the Government Seoul Office on the 18th.

Vice Minister Lee stated, "We will strengthen communication with the industry through joint meetings between the Ministry of Economy and Finance and the Ministry of Agriculture, Food and Rural Affairs with the processed food and dining-out sectors to continuously request restraint on price increases and staggered timing of hikes. We will actively review budget, tax support, and regulatory improvement measures to alleviate the industry's cost burden by listening to their difficulties."

Last month, prices for processed foods and dining-out rose by 4.2% and 5.2%, respectively, compared to the same month last year. It was explained that since prices for processed foods and dining-out tend to be downwardly rigid once increased, proactive price management is crucial.

Vice Minister Lee emphasized, "Starting from the 23rd, the prices of representative menu items from top franchise brands for a total of 12 dining-out items will be disclosed weekly on the Korea Agro-Fisheries & Food Trade Corporation (aT) website. We will closely monitor to prevent price increases based on unfair practices such as price collusion."

Additionally, with oil prices remaining in the $90 per barrel range, the government is considering extending the 20% fuel tax reduction measure scheduled to end in April. A revision bill to the Restriction of Special Taxation Act, which includes raising the special tax reduction rate by 10 percentage points for gas stations converting to budget-friendly gas stations, will be submitted to the National Assembly early next month.

Furthermore, efforts will be made to stabilize prices of agricultural, livestock, and marine products. In case of price instability caused by cold waves or other factors, the government will expand supply by utilizing government stockpiles and contracted shipments, including 2,400 tons of cabbage and 1,000 tons of radish. Rice discount events linked with the industry will be extended until the end of February. For livestock products, alternative import sources such as Australia will be proactively identified, and an auction market for eggs will open this month in Pocheon (Livestock Cooperative). Discount events for marine products will be promoted focusing on popular species such as mackerel.

Vice Minister Lee said, "The price situation in February is challenging due to difficult domestic and international price conditions. The government will respond with utmost vigilance and mobilize all available means to minimize price increases during the remaining period of this month."

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