President Yoon: "We Will Take All Supply-Side Measures on Prices" (Comprehensive)

The Entire Government Pushes to Resolve 'Supply Bottlenecks'... Presidential Office "Possibility of Supply System Review"

[Image source=Yonhap News]

[Asia Economy Reporter Baek Kyunghwan] President Yoon Suk-yeol stated on the 14th regarding the market instability caused by soaring prices, "Since the factors driving price increases are coming from the supply side, the government will take all possible measures." This reflects the judgment that the cause of the soaring prices, which have not been controlled even by raising the base interest rate, lies more in external supply rather than demand, and expresses the intention to mobilize all means at the pan-government level.

At the senior secretaries' meeting he presided over the previous day, President Yoon received reports on economic and industrial trends and instructed, "Do your best to manage prices," and "Find ways to alleviate the difficulties of ordinary people through proactive measures." He also discussed prices during his first weekly meeting with Prime Minister Han Duck-soo and agreed to promote measures to minimize the burden on the public.

Regarding the proactive measures mentioned by President Yoon, a presidential office official said, "There may be follow-up measures to inspect the (supply) system for major items such as raw materials, energy, and grains, which are driving up domestic prices overall." Supply chain management is also an issue President Yoon has consistently emphasized alongside price management. Discussions are underway on support measures such as tax and financial assistance targeting private companies focusing on supply chain stability, as well as government-level management.

The 'New Government Regulatory Innovation Promotion Direction' released by the Prime Minister's Office on the same day aligns with this approach. Following President Yoon's instructions, the government aims to create a foundation for sustainable growth through strong and comprehensive regulatory innovation. Previously, the government planned to institutionally support companies diversifying import sources and expanding production facilities in response to supply chain instability.

Following President Yoon's determination to control prices, the ruling party and government have also begun preparing concrete measures. The ruling party announced on the same day that it would take legislative actions to expand the reduction of fuel tax and lower tariffs. Kwon Seong-dong, floor leader of the People Power Party, said, "We have established a Price and Livelihood Countermeasure Committee under the policy chief, and the policy chief is directly ordering the government to reduce fuel taxes and various tariff rates."

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