Vice Minister Lee Hyeong-il Says, "Food Prices Remain Strong... We Must Be Highly Vigilant on Global Oil Prices"

According to Financial News, Lee Hyeong-il, First Vice Minister of Finance and Economy, chaired a Vice Ministers’ Meeting on Prices on the 3rd. The meeting reviewed January consumer price trends and discussed price movements and policy responses for key items, including Lunar New Year holiday essentials.
Lee noted, "The consumer price inflation rate in January came in at 2.0%, which is in line with the inflation target, as price increases for agricultural, livestock and fishery products slowed and petroleum product prices stabilized." He added, however, "Some food items remain expensive, continuing to weigh on low- and middle-income households."
He went on to say, "As demand for holiday essentials is rising ahead of the Lunar New Year, the government will implement the largest-ever package of measures to stabilize people’s livelihoods for the holiday without any setbacks, and will thoroughly prepare for weather impacts such as heavy snow and cold waves to fully stabilize both prices and supply of agricultural, livestock and fishery products." He also stressed, "Given that geopolitical risks related to Iran have recently intensified, increasing volatility in global oil prices, we will maintain a high level of vigilance and closely monitor domestic petroleum product prices and supply conditions."
The government is releasing stockpiled agricultural and fishery products and operating livestock slaughterhouses on weekends. By doing so, it is increasing supplies of key holiday items such as napa cabbage, apples, Korean beef, and mackerel by 50% compared with normal periods. In addition, since the 29th of last month, it has been providing discounts of up to 50% on these essentials, backed by 91 billion won in government support.
Authorities will also strengthen price monitoring before and after discounts to ensure that the benefits of discount programs are fully passed on to consumers. For eggs, whose prices have been elevated due in part to recent avian influenza outbreaks, imports of 2.24 million fresh eggs from the United States have been completed, and the full volume is to be swiftly supplied to the market before the Lunar New Year holiday.
From the 2nd to the 18th, the Ministry of the Interior and Safety (MOIS), local governments, and the private sector are jointly cracking down on unfair practices such as price gouging on holiday essentials that target seasonal demand. Violations, including failure to post prices and collusive price-setting, will be strictly punished under relevant laws. To fundamentally root out price gouging, the government also plans to announce, within the first quarter, a comprehensive inter-ministerial plan to eradicate such practices, including amendments to related statutes and regulations.

syj@fnnews.com Reporter Seo Young-jun Reporter