Seoul: The government and the ruling Democratic Party (DP) have reached a consensus to exert significant effort in stabilizing prices and swiftly implementing a supplementary budget. This initiative aims to enhance public welfare and stimulate economic growth, as officials announced following a high-level policy coordination meeting at the prime minister's residence.
According to Yonhap News Agency, the discussions marked the first high-level meeting since the new Prime Minister, Kim Min-seok, assumed office. The meeting underscored a collective commitment to address inflation concerns, with party spokesperson Park Sang-hyuk emphasizing the need for proactive measures to curb perceived inflation and mitigate its impact on citizens.
Consumer prices have shown a notable increase, with government data indicating a 2.2 percent rise in June compared to the previous year, the highest annual increase since January. Processed food products experienced a 4.6 percent increase, contributing significantly to overall inflation. The DP pressed the government to expedite the second supplementary budget execution to capitalize on the economic recovery window, with plans to implement 85 percent of the budget by the end of September.
The Cabinet recently approved a 31.8 trillion won (US$23.3 billion) extra budget, marking the first under the Lee Jae Myung administration. The government, alongside the DP, also focused on disaster preparedness and response, particularly for natural calamities like floods, storms, and heat waves. The meeting served as a platform for discussing the national agenda, with Prime Minister Kim highlighting the importance of maximizing the supplementary budget's impact and ensuring readiness for summer disasters.
Key attendees from the ruling party included floor leader Kim Byung-kee, acting as the party's interim leader, and Rep. Jin Sung-joon, the policy committee chair. Government representatives included Yoon Chang-ryeol, chief of the Office for Government Policy Coordination, and First Vice Minister of Economy and Finance Lee Hyung-il. The DP floor leader emphasized the urgency of implementing the supplementary budget and addressing inflation and heat wave preparedness.