Lee Hyung-il, the nominee for Deputy Prime Minister and Minister of Economy and Finance, has been tasked by President Yoon Suk Yeol to prioritize price stability ahead of the Chuseok holiday. He plans to expand the supply of essential goods and discount support while continuing to address factors contributing to price instability, such as international oil prices.
During a press briefing at the Government Sejong Center on September 2, Lee stated, "Price stability is fundamental to the economy and the starting point for reducing inequality. I will do my utmost to stabilize prices, viewing the cost of living as a report card for the economic team."
Earlier, at a Cabinet meeting, when asked by President Yoon if he was confident in stabilizing prices for Chuseok, Lee responded, "I will definitely manage it well."
In the same briefing, Lee emphasized, "Price stability is the biggest mission for price authorities and the foundation of the economy. We have announced measures for Chuseok, and we will identify new areas for improvement and announce them soon."
Addressing concerns that expansionary fiscal policy could trigger inflation, Lee argued for the need to distinguish between the roles of fiscal and monetary policy. He said, "We need to enhance growth capacity through expansionary fiscal policy and focus on key investments to reduce inequality." He explained that fiscal policy should target necessary sectors for support, while overall demand should be managed by monetary authorities.
Regarding the rise in the inflation rate to 3.1% in August, Lee attributed it to a base effect from temporary discounts on communication fees. He noted that without the impact of last year's half-price mobile phone discount, the inflation rate would have been in the mid-2% range.
Lee remarked, "While we need to closely monitor inflation, I believe it can be managed through proactive monetary policy. The price authorities will continue to work diligently on this matter."
On the issue of rising international oil prices, he stated that the timing for ending the price cap on oil will be determined by observing the situation in the Middle East and oil price trends. He explained, "The decision on when to lift the price cap ultimately depends on international oil prices. We must consider the developments in the Middle East conflict as we deliberate on this matter."
Additionally, Lee announced plans to enhance the pre-review and coordination functions of the Economic Relations Ministers' Meeting to boost the momentum of economic policy. He intends to coordinate major policies with relevant ministries and the Blue House before they are presented at Cabinet meetings or publicly announced. For issues with significant disagreements among ministries, he plans to establish a so-called 'Economic Issues Discussion Meeting' for ongoing discussions.
Lee also expressed his commitment to maintaining a broad framework for economic policy that includes price stability, a rebound in potential growth rates, and the reduction of inequality. He plans to strengthen support for vulnerable sectors such as youth, small businesses, and medium-sized enterprises, leveraging the policy capacity gained from the semiconductor boom.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.