Yoon: "Public Sector Austerity Inevitable... Must Be Fully Committed to Stabilizing Livelihoods" (Update)

-'Price Shock' Emergency Economic and Livelihood Meeting After Three Days... "Comprehensive Support for Fuel Costs, Expansion of Flexible Fuel Tax Rates"
-"If the Shock of Rapid Price Increases Is Passed on to the Socially Vulnerable, Everyone Suffers... Public Rental Housing Rent Freeze"

President Yoon Suk-yeol presided over the "1st Emergency Economic and Livelihood Meeting" on the morning of the 8th at the Yongsan Presidential Office building in Seoul.

[Asia Economy Reporter Bae Kyunghwan] President Yoon Seok-yeol stated on the 8th, "We are currently facing a global economic crisis," and emphasized that "a tightening of the public sector budget is inevitable." This means that the budget secured through austerity measures will be used to restore the livelihood economy. In particular, he said, "The more difficult the economy, the more the common people and vulnerable groups suffer, so we must devote ourselves to stabilizing their livelihoods," and urged all ministers to "strengthen their extraordinary resolve together."

Before the first Emergency Economic Livelihood Meeting on the same day, President Yoon told reporters, "We will discuss how to manage livelihood issues, prices, and the costs of various daily necessities." The Emergency Economic Livelihood Meeting was held just three days after President Yoon announced at the Cabinet meeting on the 5th, "I will preside over the Emergency Economic Livelihood Meeting every week and directly oversee livelihood issues."

President Yoon reviewed the economic situation and sector-specific risks with ministers and vice ministers from 12 ministries and discussed measures to stabilize livelihoods by alleviating the burden of high prices, including expanding the list of items subject to tariff quotas. However, he announced plans not to cut investments in education and R&D (research and development), which are future growth engines.

Specifically, he ordered that the funds secured by steadily implementing the high-intensity expenditure restructuring of the public sector, which was discussed at the National Fiscal Strategy Meeting the day before, be maximally allocated to support vulnerable groups. President Yoon pointed to fuel, food, and daily necessities costs, urging, "We must provide more comprehensive support covering all these areas."

He also mentioned proactive supply and demand management to stabilize living costs, boldly expanding overseas imports, and significantly increasing discount support for agricultural, livestock, and fishery products. Furthermore, President Yoon said, "In preparation for the continuation and worsening of the high oil price situation, we will push to expand the limit of the flexible fuel tax rate so that additional fuel tax cuts can be implemented promptly."

For borrowers struggling due to the steep rise in interest rates, especially young people in their 20s and 30s, he introduced support measures such as freezing rents for public rental housing. President Yoon added, "The crisis triggered by global inflation is testing our people's ability to respond through solidarity. If the shock of price surges is passed on to vulnerable groups and socially disadvantaged people, inflation will lead to a vicious cycle of economic recession, deepening everyone's suffering."

On this day, President Yoon urged the attending ministers and vice ministers, "This is an emergency situation. Please devise all possible measures." He also decided that from the next meeting onward, he will visit livelihood sites directly to hear diverse opinions from private experts and field workers and seek solutions together with relevant ministers.

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