Emergency Ministerial Meeting on Economic Affairs
Deputy Prime Minister Kyungho Choo convened the Emergency Ministerial Meeting on Economic Affairs at the Government Complex-Seoul on October 16 to discuss; 1) Israel-Hamas conflict and its implications, 2) Current status of preparation against the Carbon Border Adjustment Mechanism (CBAM) and response plans, 3) The third solution to address regional job vacancies, 4) Measures to enhance quality control and supply stability for major procurement products and 5) Plans to improve the pet insurance system.
The following is a summary of DPM Choo’s remarks.
The Korean economy has been showing clear signs of recovery thanks to the rebound in the production and export of the manufacturing sector. Nevertheless, uncertainties in the macroeconomic conditions linger as the recent armed conflict between Israel and Hamas has escalated geopolitical tensions. With regard to its impact on the economy, the direct impact on the financial sector and the real economy currently appeared to be limited. However, depending on future developments, global oil prices are likely to surge resulting in a wider volatility in the real economy, financial markets, and foreign exchange markets.
Under the circumstances, the government will conduct 24-hour market monitoring with a heightened vigilance while taking timely action according to the contingency plan in collaboration with relevant ministries if necessary. Moreover, in order to manage price stability particularly in energy and food, temporary fuel tax cut and subsidies for diesel and natural gas, which was supposed to terminate at the end of October, will be extended by the end of the year.
In line with the EU Carbon Border Adjustment Mechanism (CBAM), which came into effect on October 1, 2023, the government will further commit to alleviate burdens of Korean exporting companies. Most of all, it will continuously push for negotiation with the EU for the recognition of Korea’s Certified Emission Reductions (CER) in its implementation legislation for the CBAM. In addition, extensive assistance will be provided for small- and medium-sized enterprises (SMEs) with limited capabilities to respond to the issue, through services such as carbon emissions measurement, reporting, and verification consulting, as well as the distribution of EU reporting case studies.
At the same time, as many regions are still suffering the labor shortages despite a robust employment, the government will provide tailored support for projects to address regional job vacancies taking into account regional conditions and demand. In addition, it will further enhance quality control and supply stability for key procurement products such as water hygiene and ready-mixed concrete as well as support the launch of various pet insurance products.
Please refer to the attached files.
