The government has announced measures to enhance the effectiveness of price stability initiatives. To address the limitations of existing legal sanctions against violations such as hoarding, the Price Stability Act will be amended to introduce monetary penalties. Additionally, the government will extend fuel tax cuts for gasoline by 15% and diesel by 25% for two more months, until the end of July, in response to rising international oil prices.
Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, convened a task force on special management of living costs and the 268th External Economic Ministers' Meeting on May 21 to unveil these measures.
Previously, the government had implemented maximum price controls on petroleum products, emergency supply adjustments, and a ban on hoarding to address supply shortages. However, there were no legal means to compel sales in cases of hoarding violations, and significant time was required to supply goods to the market.
To rectify this, the government is establishing measures to deprive illegal profits through monetary sanctions. A Ministry of Economy and Finance official stated, "We will impose administrative penalties such as compliance fines and surcharges for violations of price stability measures, and we will introduce special provisions for sales to improve the distribution speed of goods in short supply and recover illegal profits."
The amendment to the Price Stability Act will impose monetary penalties exceeding unjust gains. Surcharges will be levied for violations of emergency supply adjustments and the hoarding prohibition to recover economic benefits. A reward system for reporting violations will also be introduced to encourage whistleblowing.
To quickly resolve supply shortages, rapid distribution enforcement measures will be implemented. If violations of government measures are detected, a disposal order will be issued, and failure to comply will result in compliance fines. New regulations will also allow for the sale of confiscated goods when urgent supply is needed.
With the amendment of the enforcement decree of the Price Stability Act, the authority to crack down on hoarding violations at the import and customs stages will be delegated from the relevant minister to the Commissioner of the Korea Customs Service. In cases of disposal of violating goods, the police will actively utilize pre-indictment confiscation to recover the value during the investigation stage.
A Ministry of Economy and Finance official noted, "We will apply the revised enforcement decree of the Price Stability Act starting this month and will push for amendments to the Price Stability Act in August."
As international oil prices continue to soar, the government will extend the fuel tax cuts until July 31, maintaining a reduction of 15% for gasoline and 25% for diesel, particularly benefiting essential diesel used in industries and logistics.
However, the specific end date for the fuel tax cuts has not yet been determined.
The government plans to implement the revised enforcement decree of the Transportation, Energy, and Environment Tax Act following approval at the Cabinet meeting.
The Ministry of Economy and Finance anticipates that the inflation rate for May will remain around 2%. A ministry official commented, "There have been no significant fluctuations in petroleum product prices, and no unusual factors have been identified in agricultural and marine products. It seems likely that prices will rise less than in April."
* This article has been translated by AI.
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