Choi Sang-mok: "We Will Do Anything for Livelihood Recovery... Prices of Essential Goods Lower Than Last Year"

"Energy Supply Stability, Resolution of Export Logistics Challenges"

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, announced the Lunar New Year livelihood stabilization measures, including price reductions for Lunar New Year seasonal products and support for vulnerable groups, stating, "We will do everything to restore people’s livelihoods." In response to rising logistics costs due to Middle East risks, temporary ships will be deployed and logistics support provided.

On the 16th, Deputy Prime Minister Choi held an emergency economic ministers’ meeting and a price-related ministers’ meeting at the Seoul Government Complex, stating, "The government has prepared Lunar New Year livelihood stabilization measures focusing on price stability and livelihood support so that all citizens can have a warm Lunar New Year holiday."

He said, "We will supply a record-high 260,000 tons of seasonal products and invest 84 billion won, more than double last year, in discount support to manage prices lower than last year. In particular, we plan to significantly increase the supply of apples and pears to average levels and manage the price increase rate, which is currently in the 20% range, to single digits."

Deputy Prime Minister Choi said, "We will establish low-interest refinancing loans for small business owners, starting applications in February, and extend the VAT and corporate tax payment deadlines for 1.28 million small and micro-business operators, as well as provide early VAT refunds," adding, "for 3.65 million vulnerable households, we plan to defer the electricity rate increases, which were postponed in January and May last year, for another year, easing the burden by about 290 billion won." To support tourism activation, 200,000 accommodation coupons will be distributed in February, the travel month.

Regarding livelihood measures, he also requested cooperation from the National Assembly. He said, "For a swift recovery of livelihoods, urgent legislation is needed for policies that the public eagerly awaits, such as a temporary increase in income deduction rates for traditional markets and a temporary reduction of individual consumption tax when replacing old vehicles." He added, "The government will sincerely explain and seek cooperation from the National Assembly, and we earnestly request the National Assembly to actively proceed with legislation in line with the public’s wishes."

Proactive measures will also be taken regarding growing concerns over logistics costs due to increased geopolitical uncertainty near the Red Sea. Deputy Prime Minister Choi said, "The shipment of our export goods and the import of energy such as oil and natural gas are proceeding normally, but shipping freight rates continue to rise, and a temporary shortage of shipping space is expected." He added, "Starting this week, four temporary ships will be newly deployed on European routes, and the export voucher international transportation cost support limit will be raised according to the freight rate increase trend."

He continued, "The private sector and relevant ministries will collaborate to promptly implement energy supply stabilization and export logistics difficulty resolution measures according to contingency plans for various situations."

Efforts will also be made to revitalize the construction industry. Deputy Prime Minister Choi emphasized, "Fiscal spending will focus on welfare for the vulnerable, jobs, and SOC (social overhead capital) projects, with more than 65%, the highest ever, to be executed in the first half of the year." He stressed, "In particular, to invigorate the construction industry, which has recently shown a slowdown, about 15.7 trillion won (65%) will be intensively invested in SOC projects in the first half."

He added, "To ensure rapid execution up to the final consumers, 75% of the total budget will be swiftly allocated in the first half, and conditions for execution will be improved by expanding advance payment limits," and said, "Public institution investments and private investment projects will also be executed at record levels of 34.9 trillion won and 2.7 trillion won, respectively, in the first half, supporting domestic demand and construction investment recovery."

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