MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: Release Date: March 25
Contact Information: Kim, Hyun-ik (02-2150-2772/ Prices Policy )
Government to Strengthen Measures for Stabilizing Public Livelihood
The Ministry of Strategy and Finance held a meeting on March 25 at the Government Complex in Gwacheon to discuss steps to stabilize prices. Participants called for the boosting of the country's policy measures regarding domestic and international price fluctuations as well as increased steps to verify the safety of items imported from Japan.
Oil and raw material prices are expected to rebound following their recent fall as a result of the earthquake in Japan and uneasiness over the situation in the Middle East, including recent air strikes against Libya. Due to the Korean economy's strong dependence on imported raw materials, international oil and raw material prices are likely to negatively affect the domestic market.
However, prices of agricultural and livestock products are expected to stabilize after the middle of April following unease over supply and demand as a result of factors such as a cold wave and outbreaks of foot-and-mouth disease. Thus, starting in April, domestic prices are likely to fluctuate less than those of the oil and raw material markets. The government will closely monitor international oil and raw material prices while minimizing any impact on local prices.
Also, the government will strengthen its checks of imported Japanese food to ease concerns over those products following the leak of radiation from a reactor in Japan. Since March 14, the government has been checking all agricultural and fishery products as well as processed items imported from Japan, and no contaminated products have been found.
The government plans to stabilize prices by measures such as boosting the efficiency of the circulation of agricultural products including the reinvigoration of direct transactions. It will also expand its checks of domestic price differences on the basis of its check in the second half of 2010. Since January 1 of this year, the government has been lowering duties on imported items that are more expensive domestically such as baby carriages and children's clothing, leading to a reduction in the prices of those items.
The government is also planning to check the prices of 50 items including necessities such as flour and instant noodles as well as new high-tech items. Food and beverage prices to be checked on a quarterly basis and those of industrial products will be checked in the first and second halves of the year. Priority will be given to items that closely affect the public livelihood, and the government will closely analyze how domestic prices exceed those of overseas as well as plan an effective system to deal with the phenomenon.
Furthermore, around the start of the new semester, the government has been strengthening its efforts to stabilize costs such as those for private institutes, kindergartens and childcare. It will also implement special supervision to prevent an excessive rise in the cost of tuition for private institutes. To maintain stability in the costs for private institute or kindergarten tuition, it will heighten its efforts to boost transparency. Under a revision of the country's private institute bill, it is mandatory for institutes to make public their tuition costs and issue receipts.
Press Release
MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
In addition, the government will submit as soon as possible a revision to the special law on the publication of tuition fees by educational institutions. The publication of information about kindergartens will improve parents' right of choice and provide greater transparency among kindergartens in terms of competition.
For childcare, mayors and governors have imposed a ceiling so the fluctuation of the cost will not exceed the 2-3% level. For the lessening of additional costs such as special activity fees, a ceiling for such costs went into effect this month and a measure for the publication of information on childcare is being carried out.
