Gov't considers slashing tariffs on imported produce ahead of Chuseok

The Korea Times

The Korea Times

Finance

Sun, October 1, 2023 | 19:09

Economy

Gov't considers slashing tariffs on imported produce ahead of Chuseok

Posted : 2022-08-07 15:48

Updated : 2022-08-08 16:57

Vegetables are on display at a supermarket on Friday. Yonhap

Economy-related ministers to meet Monday to discuss anti-inflationary measures

By Yi Whan-woo

The government is anticipated to lower tariffs on imports of vegetables, fruits and other agricultural products in high demand temporarily in the lead up to Chuseok holiday, according to sources familiar with the matter, Sunday.

Under the policy on tariff rate quotas, duties on imported target items can be cut far below the regular rate ― possibly even to zero ― in a bid to tame inflation.

The targeted items include cabbages, radishes, onions, garlic, potatoes, apples, pears and chestnuts.

The decision will be finalized during an economy-related ministerial meeting to be presided over by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, Monday, where the prices of traditional Chuseok food ingredients will be checked.

A traditional mid-autumn holiday in Korea, Chuseok is when prices normally rise as many people go shopping to prepare festive dishes, among others. It falls this year on Sept. 10.

The ministerial meeting is held every year before Chuseok to decide whether it is necessary to take measures in advance to curb prices.

The 2022 meeting, however, will be more significant than meetings in previous years as inflation is anticipated to surge through October after hitting almost a 24-year high of 6.3 percent in July.

The July increase also marks the first time in nearly 24 years for the inflation rate to stay in the 6 percent range or higher for the second consecutive month.

By items, the prices of the 144 most frequently purchased daily goods rose 7.9 percent year-on-year, while the prices of agricultural, livestock and marine products combined rose to their highest level in seven months at 7.1 percent.

"The government will make sure to stabilize the prices of consumer goods and will come up with preemptive measures with Chuseok approaching," Choo said last week.

A government source explained that the meeting this year is scheduled early compared to in the past. The source added, "It shows that the government is fully aware of inflation compounding woes on people's livelihoods ahead of Chuseok."

In addition to the possible lowering of import tariffs, the government is also believed to be considering distributing discount coupons for grocery shopping and offering special loan programs for the self-employed as well as for small- and medium-sized enterprises (SMEs).

Meanwhile, the government has been running zero-percent quota tariffs on some imported livestock items, including beef, pork and chicken, since July.

Among agricultural products, barley, corn and soybeans for cooking also have been subject to lowered tariffs.

yistory@koreatimes.co.kr