Hong Nam-ki "Final Check Underway for Expanded Fuel Tax Cut, Official Announcement on 5th Next Month"

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance, is speaking while presiding over the Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 31st. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Sejong=Reporter Kim Hyewon] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 31st that "the final review on whether to expand the scope of the fuel tax reduction is underway," and "additional measures, including the expansion of items subject to tariff quotas, will be finalized and announced at the Price-Related Ministers' Meeting on the 5th of next month."

Deputy Prime Minister Hong made these remarks during an Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office on the same day.

The government is currently considering expanding the fuel tax reduction rate beyond the existing 20%. A final decision will be made after reviewing international oil prices and the consumer price situation in March this week. If the reduction rate is expanded to 30%, the tax on gasoline will decrease to 574 won per liter.

Hong Nam-ki diagnosed, "Uncertainties continue to accumulate as risk factors such as the prolonged Ukraine crisis, intensified global inflation, and supply chain disruptions overlap."

He explained, "In particular, rising energy prices such as oil and raw material prices are increasing domestic and international inflationary pressures, and market volatility is also increasing, with the 10-year government bond yield surpassing 3% this week for the first time in 7 years and 6 months, so we are responding with special caution."

Deputy Prime Minister Hong emphasized, "While maintaining economic resilience as much as possible during the government transition period, we will make every effort until the last moment to minimize and stabilize risks in three major issues: living costs, financial markets, and real estate."

Regarding the government bond market, he said, "We will adjust the issuance volume of government bonds by timing and maturity according to market conditions, and actively consider stabilization measures if interest rate volatility becomes excessive."

At the meeting, the government discussed extending the designation of Gunsan, Jeonbuk, as a Special Industrial Crisis Response Area. Hong Nam-ki stated, "Considering the continued employment slump in the shipbuilding and automobile sectors, which are the main industries in the Gunsan area, and the fact that the reactivation of the Gunsan shipyard and the full-scale operation of major electric vehicle companies are expected after next year, discussions will be held to extend the designation at the meeting."

Since April 2018, the government has designated six areas, including Gunsan, where shipbuilding industries are concentrated, as Special Industrial Crisis Response Areas to support them in responding to corporate crises. The designation period for Gunsan is set to expire on the 4th of next month.

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