[Weekly Outlook] Yoon Administration Announces Economic Policy Direction... Import Prices and Employment Trends Released

First Economic Policy Direction Since New Government Inauguration
Regulation and Tax Reform... Structural Reform in Five Major Sectors
May Export-Import Price Index and Employment Trends Announced

[Image source=Yonhap News]

The Yoon Suk-yeol administration will announce its economic policy direction, outlining plans for the next five years, for the first time since its inauguration next week.

According to related ministries on the 12th, the government is scheduled to announce the new administration's economic policy direction on the 16th. This economic policy direction will comprehensively include the economic policies and directions that the government will focus on over the next five years.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho emphasized at the Economic Ministers' Meeting on the 9th, "To overcome structural and complex crises, break through low growth, and establish a virtuous cycle of growth and distribution, a bold paradigm shift in economic policy is necessary."

The government plans to reform regulations and tax systems to enhance private sector dynamism and continue structural reforms.

Deputy Prime Minister Choo stated, "We will boldly reform outdated regulations and tax systems to invigorate businesses," and "through structural reforms in five major sectors?public, labor, education, finance, and services?we will upgrade our economic growth trajectory and build a sustainable growth foundation."

Customers are purchasing ingredients at a large supermarket in Seoul. Photo by Jinhyung Kang aymsdream@

The Bank of Korea will release the 'May Import and Export Price Index' on the 16th.

Attention is focused on the import price index, which rose sharply due to the Ukraine crisis. In April, international oil prices slightly declined, causing the import price index (147.95) to fall by 0.9% compared to March. However, this was still 35.0% higher than the same month last year.

Since international oil prices showed strength again after May, it is being watched whether import prices rebounded in May.

The April export price index was 126.81, rising 1.0% month-on-month, marking the fourth consecutive month of increase. Although the rate of increase narrowed compared to the previous month (6.2%), it rose 21.4% compared to the same month last year, continuing a 15-month streak of increases.

Seoul City Food Alley Photo by Yonhap News

Statistics Korea will announce the 'May Employment Trends' on the 15th.

In April, the number of employed persons was 28,078,000, an increase of 865,000 compared to a year earlier, showing continued employment recovery.

For April alone, this was the largest increase in 22 years since 2000 (1,049,000). It is being watched whether this recovery trend will continue in May.

On the 16th, the government will publish the June issue of the Fiscal Trend report.

This report provides insights into the country's finances, including revenue and expenditure, fiscal balance, and national debt.

Lee Chang-yong, Governor of the Bank of Korea, is delivering a commemorative speech at the 72nd anniversary ceremony of the Bank of Korea held on the morning of the 10th at the Booyoung Taepyeong Building in Jung-gu, Seoul. Photo by Joint Press Corps

Also, the Bank of Korea will release the minutes of the Monetary Policy Committee (MPC) meeting on the 14th.

The minutes will include the background behind the MPC's decision on the 26th of last month to raise the base interest rate by 0.25 percentage points for the second consecutive month, as well as the members' views on further hikes.

Given the ongoing US monetary tightening and the steep domestic inflation trend, the Bank of Korea is expected to maintain its stance of raising the base interest rate.

Bank of Korea Governor Lee Chang-yong indicated another rate hike in his speech commemorating the 72nd anniversary of the Bank on the 10th, stating, "As global inflationary pressures are expected to persist for a considerable period, the central bank's fundamental role as an 'inflation fighter' is becoming important once again."

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