People shop at a traditional market in Seoul on Monday. (Yonhap)
The government plans to supply a record amount of 170,000 tons of high-demand foodstuffs and provide a discount worth 70 billion won ($52.63 million) for the upcoming Chuseok holiday, the finance ministry said Wednesday.
These measures are part of a broader effort to support the livelihoods of the people and curb inflation ahead of the major traditional holiday. The plan also includes providing financial support to small and midsized companies and micro-business owners.
According to the plan, the government will supply 170,000 tons of key holiday-related foodstuffs, including cabbages, apples, and pears, to help stabilize their prices. This is the largest amount ever supplied for such a purpose.
Demand for vegetables, eggs, and other foodstuffs usually rises in South Korea ahead of the holiday as people prepare meals for family gatherings.
The government will extend the tariff-rate quota scheme for 10 kinds of imported fruits, including bananas, mangos, and pineapples, through the end of the year to lower tariffs. This move is part of the country's flexible tariff system, where the government temporarily adjusts basic tariff rates on imported goods to stabilize prices and protect domestic producers.
A record amount of 70 billion won will be allocated to support discounts on major agricultural and fisheries products for Chuseok. Additionally, a government-wide task force will be set up to monitor the prices of key items on a daily basis.
The plan also includes extending 43 trillion won in loans and other financial support to small and medium-sized enterprises. The government will ease rules to provide a discount on electricity bills for a larger number of self-employed people with small businesses.
To help boost domestic demand, the government will provide 500,000 discount coupons for accommodations and push for tax incentives for corporate spending related to the holiday.
"Prices have largely been stabilized, and the economy is on a recovery track led by exports. But prices of farm produce and other Chuseok items are high due to the recent heat wave, and domestic demand remains weak," Finance Minister Choi Sang-mok said during an economy-related ministers' meeting.
"Policy priority will be on stabilizing prices and improving the economic situation for the people," he added.
In July, consumer prices, a key gauge of inflation, rose 2.6 percent on-year, picking up pace from a 2.4 percent increase a month earlier, driven by high prices of fruits and petroleum products.
The government has projected that the country will reach its target inflation rate of 2 percent by the end of 2024, though prices are expected to ease at a slower pace than previously anticipated. (Yonhap)
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