MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: Release Date: April 22
Contact Information: Baek San (02-2150-2774/ Price Policy Division)
G OVERNMENT R AMPS U P E FFORTS TO S TABILIZE P RICES
The Ministry of Strategy and Finance held a meeting on April 22 to discuss the stabilization of consumer prices. The government will strengthen measures to stabilize prices amid instability of prices in China and a rise in prices of raw materials although local prices of agricultural products, especially vegetables, have been dropping.
Since mid-April, prices of vegetables such as cabbage have been stable amid increased spring shipments of vegetables to markets. However, since there is lingering instability due to factors such as oil prices and weather conditions, the government plans to focus its efforts on stabilizing prices of items closely linked to those with low income. It plans to initially take measures regarding agriculture, livestock and fishery products, which have the biggest impact on the lives of the low income classes.
Prices of livestock products are gradually stabilizing as outbreaks of foot-and-mouth disease have abated and imports have grown, but chicken and pork prices continue to be higher than the yearly average. The government is planning to introduce a quota tariff for chicken, and to prepare for the peak season, duty-free imports of pork will continue to enter the market. In light of the fluctuations in prices, the government is mulling a measure to extend a quota tariff for pork that is scheduled to be in effect until the second half of this year.
Regarding oil prices, the ministry is preparing to implement a measure introduced by a special government task force to enhance transparency and promote competition in the oil market.
The government aims to strengthen its measures to insure that the price instability overseas and increased prices of raw materials will not affect local prices. Among the steps are improving distribution structures, reducing monopolies and developing overseas resources.
