Choi Sang-mok: "Yoon's Ordered Birth Support Measures to Be Released Early Next Month"

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, who is 50 days away from taking office, announced that the fuel tax reduction measure will be extended at the end of this month. He also said that the tax benefits ordered by President Yoon Seok-yeol to promote voluntary childbirth support by companies will be outlined in early next month.

On the 16th, Deputy Prime Minister Choi held his first press briefing with reporters at the Government Complex Sejong and stated, "Since international and domestic oil prices have recently turned upward again, it is inevitable to extend the fuel tax reduction measure."

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Due to concerns over the expansion of the Middle East conflict, Dubai crude oil, which serves as the benchmark for domestic gasoline prices, has risen to the low $80 per barrel range. Gasoline prices have also risen to 1,600 KRW per liter after two months, with some areas such as Seoul seeing prices rise to the 1,700 KRW per liter range.

Consumer prices, which were in the 3% range last year, remained at a 2% increase last month, temporarily slowing the inflation trend. However, considering the trend of international oil prices, there is a possibility that inflation will rise back to the 3% range this month. It appears that the government judged that if domestic oil prices rise further amid the rising fruit prices and the tight living conditions of ordinary people, it would threaten the price stabilization policy.

Deputy Prime Minister Choi said, "We have no choice but to support the alleviation of fuel cost burdens," adding, "We will increase the scale of government financial support for discounts on fruits and other items beyond the plan, and make all-out efforts for price stabilization, including communication efforts with economic agents to prevent inflationary expectations from spreading among them."

Regarding the 'childbirth support tax benefits' ordered by President Yoon following Booyoung's '100 million KRW childbirth support fund,' it was explained that the plan will be prepared by early next month. Deputy Prime Minister Choi said, "I think I will be able to explain the specific plan in early March," and "We are reviewing various measures to ensure that there is no additional tax burden on workers or companies when companies provide childbirth support funds to employees."

The 'Corporate Value-Up' program will be unveiled on the 26th of this month. Deputy Prime Minister Choi said, "We plan to announce an incentive program that can promote companies' voluntary efforts to enhance value," and "We are considering including tax incentives that can encourage shareholder return efforts."

Regarding concerns that a large-scale tax revenue shortfall may occur again this year following last year, he said, "The tax revenue trend in the fourth quarter of last year does not seem bad, and although January tax revenue has not been officially tallied, it seems to be positive," adding, "We must remain vigilant this year, but the possibility of a large-scale tax revenue shortfall like last year is not high."

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In this regard, there are also voices expressing concerns about the impact of recent tax reduction measures on tax revenue. Deputy Prime Minister Choi said, "I am aware of concerns about the impact of the measures announced at this year's economic policy direction and the livelihood forum on tax revenue," but added, "According to our estimates, the overall impact on tax revenue from the government's announcements is estimated to be around 4 trillion KRW, and since the impact is spread over several years, the effect on this year's tax revenue is about 10% of that, so the impact on this year's tax revenue or fiscal balance is not significant."

The Ministry of Economy and Finance also plans to establish a 'communication platform' to receive feedback related to the economic policy direction by the end of this month. Deputy Prime Minister Choi said, "We will build an economic policy direction communication platform to receive feedback from the public, recall, and supplement," adding, "It is difficult to make it a real-time platform, so we plan to select 30 tasks and update them every two weeks." Policy officers and administrators will shoot 'Shorts' videos to help the public understand.

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