Vice Minister Ki Jae: "Trade Deficit Widens in June... Public-Private Export Review Meeting to Be Held Next Month"

The 1st Emergency Economic Deputy Minister Meeting

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance (far left), is presiding over the 1st Emergency Economic Vice Ministers' Meeting held at the Government Seoul Office Building on the 24th. 2022.6.24 Photo by Yonhap News

[Asia Economy Sejong=Reporter Son Seonhee] Amid a continuing trade deficit since April this year, the government forecasted that the deficit will further widen this month due to a decrease in working days and the Cargo Solidarity strike coinciding. The government plans to hold a public-private joint 'Export Situation Inspection Meeting' next month to devise support measures.

Bang Gi-seon, First Vice Minister of the Ministry of Economy and Finance, presided over the '1st Emergency Economic Vice Ministers' Meeting' at the Government Seoul Office on the morning of the 24th, stating, "In June, the number of working days decreased by two days, and temporary factors such as the Cargo Solidarity strike overlapped, causing exports to show a sluggish trend," adding, "The trade deficit is also expected to widen somewhat." However, he assessed, "After the end of the Cargo Solidarity strike, exports showed a rapid recovery, and excluding the impact of working days, the daily average basis still maintains a double-digit growth rate, indicating that export momentum is being sustained."

Vice Minister Bang added, "To ensure that the export growth trend continues and expands, the Ministry of Trade, Industry and Energy will lead a public-private joint export situation inspection meeting in July to closely examine whether there are any export difficulties by item and region, and will explore various support measures such as finance, logistics, and regulatory improvements."

The government recently judged that the economic situation is facing a 'complex crisis,' converting the existing Economic Relations Vice Ministers' Meeting into an Emergency Economic Vice Ministers' Meeting and held the first meeting on this day. At this meeting, not only the trade balance but also price response tasks were discussed.

Regarding the reduction of the statutory maximum limit of the fuel tax (37%) effective from the 1st of next month, Vice Minister Bang emphasized, "To ensure that the public can feel the policy effect, we will negotiate with the refining and gas station industries to immediately lower the supply price from refineries to gas stations and the retail price at company-operated gas stations upon the fuel tax reduction, and also induce independent gas stations to lower prices as soon as possible." Furthermore, he said, "We will operate a joint inspection team with the Ministry of Trade, Industry and Energy and the Fair Trade Commission to check for unfair practices such as collusion in the refining industry and strengthen on-site inspections of the gas station industry."

Regarding prices of agricultural, livestock, and fishery products, which affect the cost of living, he reiterated, "We will manage to prevent intensified price fluctuations during the summer and proactively respond to the earlier-than-usual Chuseok holiday. We will conduct daily price trend monitoring focusing on essential food items and proactively manage items with price instability."

With pork prices, one of the representative staple foods for ordinary people, rising sharply recently, the government decided to temporarily apply a 0% tariff quota on imported pork to increase supply. Vice Minister Bang said, "We will encourage imports under the tariff quota to expand market supply," adding, "We will meticulously monitor through field visits, industry meetings, and discount events to ensure that cost reduction effects such as support for feed and fertilizer purchase costs fully benefit the public."

Additionally, Vice Minister Bang stated, "Local public utility fees such as water and sewage will be managed as stably as possible with the principle of 'freeze' in the second half of the year," and "Incentives, including special local government grants, will be provided to local governments that excel in price stabilization."

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