Tackling Prices First... Yoon Administration to Invest 11 Trillion Won in Seafood, Energy, and More (Update)

Yoon Begins Ministry Work Reports with the People
On-site and Livelihood-Focused Governance... 'An Active Government'
11 Trillion Won Invested in Price Stabilization and Small Business Support Package

The government will provide a budget support of approximately 11 trillion won for the agriculture, fisheries, and energy sectors to stabilize inflation in the 2% range during the first half of the year. This large-scale budget injection aims to quickly address urgent issues amid a situation where the annual consumer price index has surged over 3% for two consecutive years. Alongside this, financial support for small business owners and self-employed individuals, as well as measures to revitalize the local economy, will also be promoted. President Yoon Suk-yeol urged related ministries to "visit the field, listen directly, and immediately resolve even small issues," calling for a 'government that takes action.'

On the morning of the same day, the government held the first public livelihood forum with the people, chaired by President Yoon, at the Small and Medium Business Human Resources Development Institute in Yongin, Gyeonggi Province, unveiling these policy directions aimed at achieving a 'vibrant livelihood economy.'

President Yoon Suk-yeol is delivering opening remarks at the Ministry of Economy and Finance's 2024 New Year work report held in the format of a "Public Livelihood Discussion" at the Small and Medium Business Human Resources Development Institute in Yongin-si, Gyeonggi-do on the 4th.
[Photo by Yonhap News]

This year's ministry work reports are planned in a way that the government and the public discuss specific issues and devise alternatives. This reflects the field- and livelihood-centered governance approach emphasized by President Yoon since the second half of last year. President Yoon also announced, "To become a government that listens to the voices of the people and swiftly resolves problems, I will visit livelihood sites across the country and hold thematic discussions with the public."

In particular, President Yoon emphasized, "Support must be provided in terms of financial accessibility and tax administration to alleviate the burdens on marginal small business owners and small and medium enterprises." This is interpreted as a call for the realization of the '2 trillion won + α' scale win-win financial support plan, jointly proposed by the government and the banking sector to reduce their financial burdens, responding to demands from financial authorities and political circles for enhanced social responsibility.

In line with this, Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok revealed policy directions to achieve a 'vibrant livelihood economy.' The core points include ▲price stabilization for livelihood economy recovery ▲alleviation of burdens on small business owners ▲measures to activate domestic demand, along with deregulation and structural reform plans to boost the vitality of the Korean economy.

First, a total budget of 11 trillion won will be poured into the agriculture, fisheries, and energy sectors in the first half of the year. This decision is based on the judgment that the burden on businesses and households could spread as the inflation rate has exceeded 3% for two consecutive years for the first time in 19 years. This year, public utility charges such as electricity and gas have risen at the highest rate ever, and living costs such as fresh food have exceeded average levels, further increasing the burden on ordinary citizens.

For small business owners and self-employed individuals, the government will implement the 'Three Major Support Packages for Small Business Owners,' which reduce electricity bills, interest costs, and tax burdens. This is a detailed measure of the 'Financial Burden Relief for Small Business Owners and Self-Employed' announced by President Yoon at the economic community's New Year's meeting on the 2nd. At that time, President Yoon promised, "The government and the banking sector will join forces to reduce the financial burdens of small business owners and self-employed individuals so that we can coexist."

Customized support measures will also be implemented for regions experiencing population decline. Considering the revitalization of the local economy, this is planned as the 'Three-Project Revival Plan for Population Declining Areas,' including housing purchase incentives, tourism promotion, and foreigner inflow stimulation.

On this day, President Yoon repeatedly emphasized 'effectiveness' to each ministry. Beyond simple policy formulation and review, policies that the public can feel must be realized. President Yoon added, "The speed of policy implementation is paramount, and the government must move beyond review to become a government that takes action to solve problems."

President Yoon also freely exchanged opinions with people from various sectors. Small business owners, housewives, and youth participants expressed the need to alleviate burdens such as prolonged high interest rates and high living costs. Small and medium business owners and individual investors emphasized the need to promote consumption and investment. In response, ministers of related ministries explained the current status and plans of policies related to the public's opinions.

President Yoon decided that future ministry work reports will also be conducted in a manner of discussions with the public and experts at various policy sites. These will continue for more than 10 sessions covering ▲housing ▲jobs ▲small and medium enterprises ▲public safety ▲care services ▲transportation ▲medical reform ▲media policy ▲low birthrate measures ▲energy policy, etc. The venues for the forums will be held at policy sites related to the respective topics. The second forum, scheduled for the 10th of this month, will focus on 'housing' and be held in an area slated for redevelopment of an aging new town. According to the Presidential Office, subsequent venues are being considered based on the topics, including industrial complexes, youth startup spaces, universities, planned metropolitan transportation facility projects, and military bases with soldiers.

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