Choo Kyung-ho: "Processed Food Industry Must Minimize Price Increases... Diesel Subsidies Extended Until Year-End"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is presiding over a meeting to check living expenses prices at the Government Complex Sejong on the morning of the 19th. 2022.9.19 [Image source=Yonhap News]

[Asia Economy Sejong=Reporter Son Seon-hee] Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho said on the 19th, "Many economic agents are bearing the burden of rising prices, so the processed food industry should minimize the factors for price increases through productivity improvements." He issued this warning as the prices of processed foods such as ramen and snacks have been rising one after another.

Deputy Prime Minister Choo chaired the 'Living Cost Price Inspection Meeting' at the Government Complex Sejong on the morning of the same day and said, "The recent price increase movements in some quarters could further increase the burden on people's livelihoods and hinder the stabilization of prices, so we are closely monitoring related trends mainly through the relevant ministries." He emphasized, "To prevent unfair price increases, the relevant ministries and the Fair Trade Commission will jointly inspect whether there are any unfair practices such as collusion in each current issue area." In this regard, the government plans to conduct daily monitoring of trends through the food price inspection team centered on the Ministry of Agriculture, Food and Rural Affairs and promote consultations with the industry for price stabilization.

Furthermore, Deputy Prime Minister Choo announced, "The diesel fuel price-linked subsidy, which was scheduled to end at the end of September, will be temporarily extended until the end of this year to ease the burden on the freight and transportation industries." Regarding the trends in international oil prices and energy prices, he said, "Overall, they are stabilizing," but added, "Since supply and demand and price uncertainties remain high in the future, we will promptly prepare a response plan to cope with increased volatility."

Regarding local public utility charges, he said, "We will actively cooperate with local governments centered on the Ministry of the Interior and Safety to ensure stable maintenance in the second half of the year."

The government initially expected prices to stabilize after Chuseok, but due to recent heavy rains, the upward trend continues mainly in agricultural products such as vegetables. In response, Deputy Prime Minister Choo said, "We will make all-out efforts in supply and demand management until the supply conditions improve significantly with the full-scale shipment of autumn cabbage and radish in October." He added, "Especially for cabbage, which has recently seen high prices, we will respond actively by early shipment of government-controlled autumn cultivation before full growth and by importing kimchi cabbage earlier than originally planned (600 tons, early October → late September)." He continued, "Considering that the kimchi-making season begins in early November, we will prepare a supply stabilization plan for kimchi vegetables in October to keep the supply and prices of main kimchi ingredients as stable as possible."

Regarding the price outlook, Deputy Prime Minister Choo, who has continuously mentioned the 'October peak theory,' maintained the existing forecast, saying, "Provided the situation does not worsen further, we expect price conditions to gradually improve after October at the latest."

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