Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol announced plans to manage local public utility rates under a freeze policy for the second half of the year, citing ongoing inflationary pressures from rising energy prices. The government aims to collaborate with local governments to delay rate increases and minimize the impact on citizens.
During a task force meeting on living costs held at the Government Seoul Building on June 18, Koo stated, "It will take time for international energy production, transportation infrastructure, and logistics supply chains to fully normalize." He emphasized the need to remain vigilant and utilize all available measures to stabilize living costs.
The government discussed strategies for managing local public utility rates during the meeting. With persistent upward pressure on prices due to rising energy costs, officials agreed to maintain a freeze on these rates as much as possible.
In cooperation with local governments, the Ministry of the Interior and Safety plans to postpone increases in water and sewage fees, as well as trash bag prices. If increases are unavoidable, the government will spread out the rate hikes to lessen the burden on citizens. Financial support, such as special grants, will be provided to local governments actively working to stabilize prices.
While the government noted a slight easing of geopolitical risks due to ongoing negotiations for a ceasefire in the Middle East conflict, it acknowledged that the effects of rising raw material prices and supply chain uncertainties remain.
Koo remarked, "Just because the immediate waves have calmed does not mean the hidden reefs have disappeared," stressing the importance of focusing on stabilizing living costs amid ongoing uncertainties.
Additionally, to alleviate fuel costs for the transportation sector, the government plans to extend the fuel price-linked subsidies for freight and passenger vehicles, set to expire at the end of this month, until the end of September. The support will also be expanded to include charter buses. Plans for discount support, supply expansion, and measures to reduce burdens on vulnerable groups will be announced soon.
Regarding the seventh oil price cap proposal, Koo stated, "We will discuss and review the future operations in light of the ceasefire agreement in the Middle East, domestic and international oil price trends, and the burdens on living costs and finances."
* This article has been translated by AI.
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