Kwon Young-se "Real Estate, Prices, Stocks All Showing 'Red Lights'... Must Wage All-Out Battle to Control Inflation"

Mention of Economic Crisis Situation at the 7th Plenary Meeting of the Transition Committee

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] Kwon Young-se, Vice Chairman of the Presidential Transition Committee, diagnosed the current situation of the low-income economy as comprehensively difficult and expressed his determination to focus all efforts on controlling inflation.

At the 7th plenary meeting of the Transition Committee held on the 25th at the committee office in Samcheong-dong, Jongno-gu, Seoul, Vice Chairman Kwon said, "(Our economy) is in a situation where it is hard to see real estate, inflation, and stocks as normal, with red lights flashing everywhere," adding, "The International Monetary Fund projected South Korea's consumer price index at 4.0% this year, which is more than 1.5 percentage points higher compared to major Asian countries."

According to the IMF's World Economic Outlook report, South Korea's consumer price inflation forecast for this year is 4.0%. This is 1.6 percentage points higher than the average of 2.4% for eight countries classified as advanced Asian nations. New Zealand was the only country with a higher rate than South Korea at 5.9%, while Japan (1.0%), Hong Kong (1.9%), Taiwan (2.3%), Singapore (3.5%), and Australia (3.9%) were all lower than South Korea.

Vice Chairman Kwon stated, "Real estate and housing prices are still making life difficult for ordinary people," adding, "If there are 100 apartments, five years ago, 17 of them could be purchased by the middle class even with loans, but now fewer than three can be bought," and emphasized, "The problem is that the high inflation and low growth economic situation will not end in the short term."

He continued, "The Yoon Seok-yeol administration has to bear a fifth equation that considers various domestic and international variables," and said, "Selecting national tasks is not the end but a new beginning. The Transition Committee must wage an all-out battle to control inflation and continue to deliberate until the very last moment."

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