With the kimjang (kimchi-making) season at hand, the government decided to release a record budget of about 64 billion won and cut prices of kimjang ingredients and seafood by up to 50%. The judgment is that although price indicators have eased somewhat, the burden of prices felt by the public remains heavy.
Kwon Dae-young, First Vice Minister of Economy and Finance, presided over a meeting of vice ministers on prices on the 3rd. Of the 2.8% rise in consumer prices in October, he said, "Processed foods and others rose, but prices of agricultural, livestock and fishery products fell from a year earlier, so inflation slowed from the previous month."
Kwon said, "October consumer prices are continuing a relatively stable trend compared with major countries, thanks to policy efforts such as the maximum petroleum price system, despite uncertainty from the Middle East war and high oil prices." Even so, he saw a gap between the indicators and the prices people actually feel. The government diagnosed that "perceived prices remain high due to the accumulated effects of price increases."
Going forward, the government will focus its price management on letting the public feel the effects directly. It will constantly monitor items closely tied to daily life, such as agricultural, livestock and fishery products and petroleum products, and act immediately if any abnormal signs appear. It also decided to firm up the structural foundation for price stability by streamlining the distribution stage and dealing strictly with unfair practices such as collusion.
Of the kimjang support measures, 44 billion won will be used for discounts on major kimjang ingredients, including agricultural, livestock and fishery products. The discount rate is up to 40%. Some kimjang seasonings, such as salted shrimp, and major seafood can be bought up to 50% cheaper through the "Korea Seafood Grand Sale Kimjang Season Special Exhibition," which will cost 20 billion won.
Kwon said, "Prices are judged not by statistics but by the shopping basket," adding, "We will see this through to the end, until the government support is confirmed as real price stability in people's daily lives."