Choo Kyung-ho: "Inflation Decline Slower Than Expected... Special Price Stabilization System Activated"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated on the 2nd, "Domestic prices are expected to decline at a slower pace than initially anticipated due to recent geopolitical risks in the Middle East and abnormal cold weather."

At the Emergency Economic Ministers' Meeting and Price-Related Ministers' Meeting held at the government Seoul office that morning, Deputy Prime Minister Choo said, "Core inflation, which shows the underlying price trend excluding highly volatile food and energy prices, continues to remain stable. However, uncertainty persists as international oil prices have been fluctuating sharply depending on the developments of the Middle East situation."

In response, the government will activate an inter-ministerial special price stabilization system that prioritizes price stabilization policies across all ministries.

Deputy Prime Minister Choo emphasized, "Each ministry's vice minister will serve as the price stabilization officer, taking full responsibility for stabilizing prices in their respective sectors with a firm commitment. For matters requiring cooperation among related agencies such as supply-demand management and system improvements, we will respond immediately through price-related ministers' meetings and vice ministers' meetings, with all ministries making every effort to stabilize prices."

The government will also fully implement a field-centered price response system. All ministries will continuously visit the field to identify price-related difficulties and take immediate action on-site.

Deputy Prime Minister Choo said, "For 14 types of kimchi-making ingredients including cabbage and radish, we will invest a record-high total of 24.5 billion KRW, significantly expand discount items and levels, and supply 10,000 tons of contracted and stockpiled goods intensively to reduce consumer prices by up to 50-60%."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho (left) is speaking about the price situation at the Emergency Economic Ministers' Meeting and Price-Related Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 2nd. Photo by Jo Yong-jun jun21@

Regarding winter heating cost support, he explained, "We will strive to promptly pass legislation in the National Assembly to allow for the automatic application of gas bill discounts. We will also expand winter heating support for social welfare facilities such as senior centers to 400,000 KRW and include daycare centers as eligible facilities for gas bill discounts."

On the Federal Reserve's decision to hold the benchmark interest rate steady on the 1st (local time), Deputy Prime Minister Choo assessed, "This decision was in line with market expectations." He added, "However, as Federal Reserve Chair Jerome Powell mentioned in his press conference, global inflationary pressures remain high, and uncertainties due to geopolitical risks persist. The government will thoroughly manage vulnerable sectors and, if necessary, coordinate with related agencies for swift responses."

Earlier, on the 1st (local time), the U.S. Federal Open Market Committee (FOMC) held a regular meeting and kept the benchmark interest rate at 5.25-5.50%. Contrary to market expectations, Chair Powell evaluated inflation as favorable, leading to a rise in the New York stock market and a decline in bond yields.

Regarding exports, Deputy Prime Minister Choo anticipated a full-scale recovery by the end of the year. He said, "October exports confirmed that the recent economic recovery trend is continuing into the fourth quarter. Exports turned positive (5.1%) for the first time in 13 months, showing broad-based improvement without concentration in specific regions or items, making the export recovery trend more solid."

He added, "Considering the recent improvement in the semiconductor industry, this recovery trend is expected to continue beyond October. However, given the considerable external uncertainties surrounding our economy, we will make every effort to accelerate the export recovery by promptly producing follow-up results from normal diplomacy and resolving on-site difficulties."

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