The South Korean government will inject 1 trillion won into measures aimed at stabilizing prices, including discounts on agricultural, livestock, and fishery products, reducing energy costs, and supporting small businesses affected by high oil prices. The goal is to keep the consumer price inflation rate below 3% in the second half of the year amid ongoing pressures from high inflation, exchange rates, and interest rates.
Koo Yun-cheol, Deputy Prime Minister and Minister of Finance, chaired a meeting of the Emergency Economic Headquarters and the Economic Relations Ministers' Meeting at the Government Seoul Complex on June 26, where he discussed plans to stabilize prices and alleviate burdens on the public.
To reduce food price pressures, the government plans to implement the largest discount event in history for all eligible agricultural, livestock, and fishery products during July and August. This initiative aims to ease the financial burden on consumers, particularly for items with increased demand during the summer.
To stabilize egg prices, the government will increase imports of fresh eggs by more than six times, adding 200 million eggs to the supply. Additionally, a special delegation will be sent in July to directly import 2,000 tons of Norwegian mackerel to stabilize its prices and supply it at lower costs.
To alleviate energy costs, the government will freeze major public utility rates, including electricity and gas, for the second half of the year. The LPG butane sales tax will be temporarily waived until the end of the year.
Support for vulnerable households will also be expanded. Families receiving energy vouchers for kerosene and LPG will receive an additional 147,000 won on top of their existing vouchers, which can be used from October 2026 to May 2027.
To reduce essential living costs such as transportation, the government plans to expand discounts on highway tolls for disabled individuals and veterans to lessen fuel and transport expenses.
Financial support for small businesses affected by high oil prices will be strengthened. The government will double the size of the 'Small Business Hope Dream' loan program from 1.5 trillion won to 3 trillion won. Additional incentives, such as cashback discounts, will be provided for businesses offering fair prices.
Koo stated, "While external uncertainties are gradually easing following the signing of a ceasefire memorandum of understanding in the Middle East, uncertainties remain in the follow-up negotiation process. We will do our utmost to stabilize and recover the livelihood economy while preparing for economic normalization and a major leap forward after the war."
The seventh oil price cap announced today will be lowered, taking into account the decline in international oil prices, public burdens, and fiscal conditions. However, the price cap system will remain in place until consumer prices for oil stabilize.
Koo added, "Following the measures announced today to address high inflation, we will quickly prepare and announce support measures for small and medium-sized enterprises affected by high exchange rates."
* This article has been translated by AI.
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