SEOUL, Oct. 17 (Yonhap) — Finance Minister Choo Kyung-ho said Tuesday that the government will implement measures to reduce inflation and support the people’s livelihood during the ongoing Israel-Hamas conflict, which has caused global oil prices to fluctuate and uncertainty in prices to deepen.
“Prices of agricultural products have not been stabilized due to the cold weather this month. The government will make all-out efforts to closely monitor and respond to prices,” he added.
The government will extend supplies of cabbage over the next two weeks in the run-up to the annual kimchi-making season. Cabbage is a key ingredient of kimchi, and the annual traditional of “gimjang” usually takes place from November to December as people make large amounts of kimchi as part of preparations for the cold winter.
A 50 percent discount on 1,000 tons of sea salt will be provided starting the end of this month, and rice, apples and other major products will be offered at lower prices. The government also plans to push for adopting tariff-rate quotas on imported fruits and dried milk powder, as well as introducing a quota on imports of mackerel within the month.
The tariff-rate quota is a system under which products are imported with favorable duty conditions within a designated volume.
The government has also announced that the tax cut on fuel consumption, set to expire this month, will be extended through the end of this year.
Oil prices have been volatile since the start of the clash between Israel and the Palestinian militant group Hamas earlier this month, and consumer prices reported the highest on-year increase of 3.7 percent in five months in September.
South Korea set this year’s target at a 3.3 percent rise, while the figure during the first nine months of 2023 came to 3.7 percent.
The government has forecast that price pressures would begin to ease starting around October.
graceoh@yna.co.kr
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