Seoul: The government announced on Monday its plan to release a record 172,000 tons of major food items and expand discount programs valued at 90 billion won (US$64.5 million) to stabilize living costs and encourage household consumption ahead of the Chuseok holiday next month.
According to Yonhap News Agency, these measures were finalized at a ministerial meeting led by Finance Minister Koo Yun-cheol. This decision comes amid rising concerns over increasing prices for key holiday goods, despite the overall inflation rate remaining within the Bank of Korea’s target of 2 percent.
The government’s plan includes supplying 1.6 times the usual amount of major food items before the holiday and offering discounts of up to 50 percent on popular Chuseok gift sets, such as fruits and hanwoo, a premium Korean beef. Additionally, approximately 2,700 direct-to-consumer markets will be operated nationwide to increase access to affordable goods.
The Ministry of Economy and Finance emphasized the importance of spreading the improving consumer sentiment to regional areas and small businesses. In an effort to further stabilize fresh produce prices, the government has also announced measures to cut agricultural distribution costs by 10 percent by 2030.
The plan aims to expand the role of online wholesale markets, increasing their share from 6 percent to 50 percent of all wholesale transactions by 2030. This initiative seeks to boost competition and enhance the public role of these markets. The distribution cost rate, which measures the gap between final consumer prices and producer receipts, has risen to 49.2 percent in 2023 from 45 percent a decade earlier, often being cited as a factor for high and volatile agricultural product prices.
Finance Minister Koo Yun-cheol noted that the economy is showing signs of revival, with retail sales in July recording their largest increase in two years and five months. He assured that the government will continue its efforts to ensure that the economic recovery leads to tangible improvements in people’s daily lives.