34^th Emergency Vice-Ministerial Meeting on Economic Affairs and 4^th Vice-Ministerial Meeting on Price Stability

First Vice Minister Byounghwan Kim presided over the 34^th Emergency Vice-Ministerial Meeting on Economic Affairs and the 4^th Vice-Ministerial Meeting on Price Stability at the Government Complex-Seoul on December 1 to review and discuss; 1) the progress of price stability measures conducted across ministries and 2) the government’s plan with regard to the Serious Accidents Punishment Act.

The following is a summary of 1^st VM Kim’s remarks.

The pan-governmental special price stability framework that has been operated over the past month has contributed to maintain price stability in agricultural products. The prices of major agricultural products, including those of 14 Kimjang[1] ingredients have seen an average decrease of 9.7% in November from a year ago. The government has determined to continue tariff cuts for major food ingredients, with industries increasingly joining in such efforts.

The inflation rate in November is expected to increase at a slower pace compared to October. However, as uncertainties still persist such as volatilities in global oil prices and extreme weather events, the government will sustain and strengthen its endeavors toward price stability. Starting next year, the standard sales ratio system will be applied to domestic liquor to induce price stability in the Korean liquor market. In addition, the government will discuss win-win financial strategies with the insurance industry over auto insurance, which has shown improved loss ratios compared to the previous year.

Amid the imminent application of the Serious Accident Punishment Act to businesses with less than 50 employees staring from January next year, those who will be subject to the act called for an extension of its grace period and expanded the government’s support. In response to the voices, the government is in the course of devising a comprehensive plan to reduce severe accidents, hoping that the legislative amendment for postponing the implementation will be sufficiently deliberated and passed in the National Assembly, taking into account the difficulties facing the SMEs and their lack of readiness.

Please refer to the attached files.