Ministry of Economy and Finance

On November 5, the Ministry of Economy and Finance (MOEF) held the 2024 Korea-ADB High-Level Annual Consultation with the Asia Development Bank (ADB)*[1] at the Export-Import Bank of Korea. The Annual Consultation, now in its eighth year following last year’s meeting, serves as a platform for discussing policy directions and specific cooperative initiatives between Korea and the ADB.   Above all, the MOEF representatives emphasized that Korea’s expanded Official Development Assistance (ODA)* and increased contributions to the ADB have made it increasingly important to ensure effective performance management of its trust funds. In addition, they mentioned its significant contributions to key areas of the ADB projects, including climate change and digital transformation.   * ODA budget: 3.71 trillion won (2021) → 6.26 trillion won (2024)   The ADB provided an overview of its plans to enhance internal performance management through performance indicators, alongside a review of the bank’s medium- to long-term strategic directions. The ADB also outlined its climate change adaptation policy and policy directions for securing critical mineral supply chains to support clean energy technology adoption as key areas of emphasis moving forward.   In response, the Korean government expressed its interest in climate change response and supply chain policy initiatives, stressing the need for cooperation with the ADB.   Following the annual consultation, ADB Vice President Scott Morris paid a courtesy visit to First Vice Minster Kim Beom-suk, thanking him for Korea’s preparations for the high-level consultation. VM Kim acknowledged the ongoing progress in Korea-ADB partnership, including hosting the 2023 ADB Annual Meeting, and expressed hope that cooperation between Korea and the ADB would further strengthen with the new president’s term beginning in February 2025. They also discussed the importance of increasing Korean personnel within the ADB to expand Korea’s role in the bank. Vice President Morris expressed gratitude for Korea’s continued support, including its increased contributions to the Asian Development Fund (ADF-14), and affirmed his commitment to advancing Korea-ADB collaboration.   [1] The chief representative of MOEF: Choi, Ji Young, Deputy Minister for International Affairs. The chief representative of ADB: Scott Morris, Vice-President (East and Southeast Asia, and the Pacific) Please refer to the attached files. 

The consumer price index (CPI) in October 2024 rose by 1.3% y-o-y, down 0.3%p from September (1.6%), reaching the lowest rate of increase in 3 years and 9 months (45 months) since January 2021 (0.9%). This is due to the expanded decline in petroleum prices (-2.3% m-o-m, -10.9% y-o-y) and the slowdown in the price increase of agricultural, livestock, and fishery product prices to the 1% range (-1.1% m-o-m, +1.2% y-o-y).                                                                            Consumer Price Index (%) 2023 2024 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug  Sep      Oct y-o-y 3.8 3.3 3.2 2.8 3.1 3.1 2.9 2.7 2.4 2.6 2.0   1.6      1.3 m-o-m 0.4 -0.5 0.0 0.4 0.5 0.1 0.1 0.1 -0.2 0.3 0.4   0.1      0.0   Excluding volatile food and energy prices, the core inflation rate, which shows the trend in prices, appears to be stable, with an increase of 1.8% y-o-y (2.0% in September). The CPI for living necessities, composed of items with a high share of household spending, also climbed up by 1.2% y-o-y (1.5% in September), showing the lowest rate of increase in 45 months since January 2021 (0.8%).                                                                               Core Inflation                  (y-o-y, %) 2023 2024 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct      CPI excluding food and   energy prices 3.1 2.9 2.8 2.5 2.5 2.4 2.3 2.2 2.2 2.2 2.1 2.0 1.8      CPI excluding agricultural        product and          petroleum prices 3.6 3.2 3.1 2.6 2.6 2.4 2.3 2.0 2.0 2.1 1.9 1.8 1.7                                                                                                                        CPI for living necessities          (y-o-y, %) 2023 2024 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug   Sep  Oct        CPI for living               necessities 4.6 4.0 3.7 3.4 3.7 3.8 3.6 3.1 2.8 3.0 2.1   1.5  1.2 In November, inflation is expected to remain stable within the 2% range, despite upward pressure from factors like a slower decline in petroleum prices, assuming no significant external shocks. However, as the burden of grocery prices, especially for vegetables, persists, the government plans to increase supply of key ingredients, including cabbage (24,000 tons), radish (9,100 tons), and seasoning vegetables like chili, garlic, and onion (2,000 tons). In addition, in order to ease the cost burden on consumers, discounts of up to 40% on cabbage and radish and up to 50% on green onions, garlic, sea salt, and salted seafood will be provided. The government will also continue monitoring the price trends of major items to proactively address any inflationary pressures. Please refer to the attached files. 

The Consumer Price Index was 114.69(2020=100) in October 2024. The index remained unchanged from the preceding month and rose 1.3 percent from the same month of the previous year. Please refer to the attached pdf for the full report.