MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: Release Date: March 11
Contact Information: Kim Hyun-ik (02-2150-2772/ Prices Policy Division)
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RICESAt the Price Stabilization Meeting, a provisional meeting held weekly to curb inflation, measures to stabilize fresh food prices and service fees were discussed, along with how to effectively respond to rising oil and raw material prices and achieve long-term price stability.
To help control fresh food prices, the government will supply extra cabbages in its storage and through contract farming. It will also expand contract farming more than two folds from last year. Pork prices have been on the decline since a month ago, as more pork has been imported under the emergency tariff quota. The government will closely watch pork prices and make a decline continue.
Chicken and egg prices, which rose in line with growing demand for them as meat substitutes after the outbreak of foot and mouth disease, are expected to fall with an increase in supply.
All ministries will work closely together to rein in service fee increases, which affect inflation more than those in food prices.
The long term measures in nine areas announced last week, which cover balancing between the supply of and demand for fresh food products, improving their distribution system, promoting competition in oligopolistic industries, in particular communications and petroleum industries, and putting up price information, will be worked on intensively to be introduced ahead of schedule.
Government’s reservation of non-ferrous metals will be released by the end of April at 1-2%
discounted prices to help reduce the cost burden of SMEs. The non-ferrous metals of government release will be copper, aluminum, zinc, lead, and nickel.
Consumer prices are not likely to stabilize in the short term, as they are affected by increasing international oil and raw material prices. The government will step up efforts to field-examine difficulties industries face regarding rising prices, and reflect them in policymaking.
