South Korean President Lee calls for preemptive measures to stabilise prices
Seoul, Feb 12
South Korean President Lee Jae Myung on Thursday called for efforts to stabilise the prices of food and daily necessities by monitoring unfair trade practices and addressing structural issues in the distribution process.
Lee made the remarks during a meeting with senior aides after visiting a traditional market in the central city of Chungju ahead of the Lunar New Year holiday, which begins this weekend, Yonhap News Agency reported.
"Many people remain concerned about prices and weak sales," Lee said during the meeting at Cheong Wa Dae.
He instructed a newly launched interagency task force to prepare short-term measures to stabilise prices and closely monitor unfair practices, such as price rigging and monopolistic practices involving certain items.
"Preemptive steps are needed to address structural issues at each stage of the distribution process," he said.
Lee also pointed to cases in which some companies allegedly resold import goods subject to reduced tariffs at higher-than-market prices, stressing that firm action should be taken if such practices are discovered.
In addition, he instructed a review of school uniform prices following reports that the average cost has approached 600,000 won (USD 417), noting that the current level appears much higher than when he served as mayor of Seongnam, south of Seoul, from 2014 to 2018.
"With the back-to-school season approaching, the current school uniform prices need to be reviewed to determine whether they are appropriate," he said.
On February 5, South Korean President Lee Jae Myung instructed his aids to mobilise all available measures to stabilise prices and prevent cases in which companies raise prices by abusing monopolistic power.
Lee made the remarks during a meeting with his senior secretaries and aides, as the prosecution recently indicted company executives accused of price fixing involving daily necessities, such as flour, sugar and electricity.
"I urge you to mobilise all state power to correct the practices that force high prices on the public at all costs," Lee said. "Even if the economic indicators improve, people will struggle to feel an improvement in their lives if the prices of daily necessities remain unstable."
Lee also suggested creating a task force to oversee prices intensively over a certain period, pointing to structural problems in the distribution costs of agricultural goods, including fruits and vegetables.
Prosecutors launched the price-fixing investigation after Lee ordered the government to take a more active response to rising prices of everyday goods during a Cabinet meeting in September last year.
— IANS
Reader Comments
School uniforms costing $417?! That's insane. Even in India, private school fees and uniform costs are getting out of hand. Governments everywhere need to step in for essential items. Hope our leaders are taking notes.
The part about companies reselling import goods at higher prices after getting reduced tariffs is a classic middleman problem. We see it here with onions and tomatoes every other month. Strong action is the only solution.
Interesting to see a similar economic challenge in another developed Asian economy. "People won't feel improvement if daily necessity prices are unstable" – that line hits home. GDP numbers mean little if aata and dal are expensive.
Task forces and meetings are good, but execution matters. We have committees in India too. The real test is whether prices actually come down for the common man before the Lunar New Year or our Diwali. Hope they succeed.
Respectfully, while the intent is good, this feels like a short-term political move before the holiday. Structural issues in distribution need long-term policy, not just pre-holiday task forces. Same lesson applies for our festival seasons.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.