In January 2024, South Korea’s consumer price inflation reached a five-month low of 2.0%, aligning with the government’s price stability target. This achievement was attributed to a slowdown in agricultural, livestock, and fishery product price increases, as well as stable petroleum prices. To maintain this trend, the government convened a price-related vice-ministerial meeting led by First Vice Minister Lee Hyung-il, focusing on holiday demand and price management strategies. The policy aims to ease the financial burden on citizens, especially during the Lunar New Year period, by ensuring stable prices for essential goods.
The expanded measures directly impact consumers, particularly those purchasing holiday staples such as cabbage, apples, Korean beef, and mackerel. The government increased the supply of these items by 50% compared to normal levels and allocated KRW 91 billion for discounts of up to 50% starting January 29. Additional actions include monitoring pre- and post-discount prices to ensure benefits reach consumers, importing 2.24 million fresh eggs from the US to address high prices, and operating livestock slaughterhouses on weekends to boost supply. These steps are designed to counter seasonal demand spikes and mitigate the effects of avian influenza and other supply disruptions.
Implementation of these policies began in late January 2024 and will continue through the Lunar New Year period. From February 2 to 18, joint inspections by the Ministry of the Interior and Safety, local governments, and private entities will target unfair pricing practices such as price collusion and non-disclosure. Violations will be strictly punished under relevant laws. The government also plans to announce a comprehensive anti-price gouging policy, including legal amendments, within the first quarter of 2024. Ongoing efforts will address volatility in international oil prices and weather-related risks to further stabilize consumer prices.
Frequently asked questions include: What goods are covered by the expanded supply and discount measures? The policy targets holiday essentials such as cabbage, apples, Korean beef, mackerel, and eggs. How are unfair pricing practices being addressed? Joint inspections and strict enforcement of relevant laws are in place to prevent price gouging and collusion. What is the government’s long-term plan? A comprehensive anti-price gouging strategy, including legal reforms, will be announced in the first quarter of 2024 to ensure lasting price stability.
South Korea’s expanded holiday price stabilization measures reflect a robust response to seasonal inflation risks and consumer concerns. The government’s decision to increase supply and offer significant discounts on essential goods, alongside strict monitoring and enforcement against unfair pricing, demonstrates a comprehensive strategy. Importing eggs to address supply shortages and planning legal reforms further strengthen these efforts. Maintaining vigilance over external factors such as international oil prices and animal disease outbreaks will be key to ensuring ongoing price stability for consumers.