The Yun Seok-yeol government has come up with measures to control inflation. However, there are already pessimistic analyzes that the effect will not be large. First, let’s see how much it has risen. The price of wheat has risen by 50% this year alone, and the price of edible milk has also risen by 40%. The price of jjajangmyeon, bread, and sweets also jumped. Korean pork belly is called Geumgyeopsal. The price of imported pork, which was even cheaper, has risen significantly. So what countermeasures did you take? He said he would cut taxes by pinching like tweezers on items with high prices, such as imported pork, flour, and cooking oil. However, many are already imported without duty, and there is concern that the impact on consumers will be negligible once they go through the distribution stage. Now, let’s see if it’s actually effective.
First of all, this is reporter Lee Saenuri.
[기자]
These days, domestic pork belly is more expensive than most imported beef.
This is because feed costs skyrocketed due to the Ukraine crisis, and samgyeopsal dinners and camping increased after social distancing was lifted.
Pork retail prices have jumped nearly 20% in just one month.
[김류연/서울 녹번동 : 고기도 30~40% 오르지 않았나 싶고 삼겹살도 비싸서 살 수가 없어요. 지금 하나도 못 샀어요, 비싸서.]
Today (30th), the government’s measures for people’s livelihoods are aimed at reducing taxes by selecting items that have a large impact on real life and have increased prices as if picking up items with tweezers.
[추경호/경제부총리 겸 기획재정부 장관 : 생활, 밥상물가 안정을 위해 먹거리 ‘수입-생산-소비’에 이르는 전 과정에 걸쳐 식료품·식자재 원가 부담 완화를 추진하겠습니다.]
It is decided to apply the quota tariff, which exempts tariffs until this year, on imported pork, cooking oil and flour.
In addition, 10% VAT is not imposed on coffee and simple processed foods such as kimchi, soybean paste, and red pepper paste.
In addition to food, measures to reduce telecommunication and education expenses such as the introduction of the 5G intermediate rate system and the freezing of student loan interest rates are also included.
However, there are also evaluations that it is insufficient to calm the current price level.
According to free trade agreements and FTAs, pork and wheat are already being imported duty-free from major importing countries such as the United States.
There is an opinion that even if the import cost is lowered, it is difficult to be reflected in the consumer price as it goes through several distribution stages.
[김상봉/한성대 경제학과 교수 : (수입 원두값은 낮아져도) 소비자가 직접 가서 먹는 커피값은 변함없는 거죠. 물가가 0.1%p 낮춰지는 건데 효과가 미미할 거라고 얘기하는 것과 똑같은…]
Therefore, there is a concern that, if no additional measures are taken, the ‘mole-catching measures’, limited to a few items that may be noticed, may be limited.
Another variable is the additional supplementary budget of 60 trillion won, the largest in history.
If money is released in the market and prices rise, this measure may not be effective.
(Video design: Lee Jeong-hoe, Huh Seong-woon / Intern reporter: Lee Dong-han)
