The government is considering designating Geoje and Tongyeong in South Gyeongsang Province as special disaster areas due to damage from recent heavy rainfall. The ninth oil price cap, reflecting recent increases in international oil prices, will be announced on August 21 and will take effect at midnight on August 22.
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol made these remarks on August 20 during a meeting of the Emergency Economic Headquarters at the Government Complex in Seoul.
Koo stated, "The government will mobilize all available means, including the consideration of declaring special disaster areas, to actively support the swift recovery of residents in affected areas." Record rainfall during the recent holiday period caused significant damage in Geoje and Tongyeong.
The government will determine the ninth oil price cap based on international oil prices and domestic inflationary pressures. Koo noted, "The ninth oil price cap, effective from midnight on August 22, will be announced at 7 p.m. on August 21 after discussions that take into account the recent rise in international oil prices and the burden on households."
As the 60-day deadline for negotiations on a ceasefire memorandum between the U.S. and Iran has expired, uncertainty in the Middle East is increasing. The government plans to review existing emergency response measures and adjust them flexibly according to international oil prices and supply chain conditions.
Domestic external soundness is assessed to be stable. The ratio of short-term external debt to foreign exchange reserves remains in the low 40% range, and Korea's credit default swap (CDS) premium has decreased from 36.0 basis points on March 30 to 22.4 basis points on August 19.
Koo explained, "Reflecting the recent significant increase in exports, major institutions are consecutively raising their growth forecasts for our economy to the 3% range this year." The Korea Development Institute (KDI) has revised its growth forecast from 2.5% to 3.2%, while Moody's has increased its forecast from 2.5% to 3.5%.
The ban on hoarding of urea and syringes, which was set to expire at the end of this month, has been extended for two months until the end of October. However, due to improved conditions for urea imports following China's export quota allocation, the criteria for determining hoarding will be relaxed from exceeding 150% of the previous year's monthly average sales to exceeding 200%.
To alleviate the burden of rising prices due to heatwaves and heavy rainfall, the government is preparing measures for Chuseok, including large-scale discount events for agricultural, livestock, and fishery products.
Koo stated, "We will systematically and collaboratively respond to unfair trading practices, collusion, and various consumer deception activities that disrupt distribution order and undermine the stability of people's livelihoods."
* This article has been translated by AI.
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