Koo made the remarks while convening the seventh meeting of the interministerial task force on special management of consumer prices at the Government Complex Seoul. He said gross domestic product grew 1.7% in the first quarter from the previous quarter, the highest growth rate in five years and six months.
The government attributed the rebound mainly to strong exports driven by a semiconductor boom, capital market activation and policy steps to support consumption. Still, it said it will focus on macroeconomic stability and easing household burdens as ceasefire talks in the Middle East war are delayed and uncertainty over an end to the conflict remains high.
To stabilize crude supply, the government said it has secured 118 million barrels of alternative crude for April and May and will smoothly provide 32 million barrels of stockpile oil swaps requested by refiners.
Koo said the fourth price cap, to take effect April 24, will be announced at 7 p.m. after consultations with relevant agencies, including discussions at the meeting, taking into account international oil price trends, petroleum consumption, the fiscal burden and the impact on households.
On measures for items under special consumer-price management, the government said it has operated a “public suggestion window” with a council of consumer groups since February and received 117 proposals. Areas cited as imposing heavy price burdens included food, energy, and housing and communications costs.
The government said it has reflected the input by preparing price-stabilization steps such as improving the system for non-apartment maintenance fees and revising mobile phone plans. From this month through June, it will spend 32 billion won to offer discounts of up to 50% on major agricultural, livestock and fisheries products.
It also said it will expand the cut in the idle tax on LPG butane, a common fuel for low-income households, to 25% from the current 105 and extend the application period by two months through the end of June.
To stabilize supplies of raw materials for construction materials, the government said it will strengthen monitoring through special on-site inspections and support supply-chain diversification, including simplifying import procedures.
Koo said items requiring price adjustments due to supply disruptions will be promptly reflected in unit prices for public construction projects, and financial support for the construction industry, including new funding and discounts on guarantee fees, will proceed without disruption.
The meeting also discussed findings from inspections and investigations into collusion in the printing paper sector and measures to prevent repeat collusion. The government said it caught six paper companies colluding on printing paper prices and decided to impose a total of 338.3 billion won in penalties, order independent price resets and refer the case to prosecutors.
To push repeat offenders out of the market, the government said it will improve the system so that penalties for repeat collusion are increased by 100% and, if necessary, registrations and permits can be revoked.
Koo said the government will restrict eligibility to participate in public bids not only for bid rigging but also for non-bid collusion such as price fixing. He said the restriction period will be extended by six months for both ringleaders and minor participants to “eradicate collusion at its source.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.