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 stagger rate increases and minimize their impact on citizens.
During a task force meeting on living costs at the Government Seoul Complex on June 18, Koo stated, "It will take time for international energy production, transportation infrastructure, and logistics supply chains to fully normalize," adding, "We will mobilize all available means to stabilize living costs without letting our guard down."
The government discussed strategies for managing local public utility rates, agreeing to maintain a freeze as much as possible due to persistent upward pressures from energy prices. The Ministry of the Interior and Safety will work with local governments to delay increases in water and sewage fees and garbage bag prices, and if increases are unavoidable, to spread them out to lessen the burden on residents. Financial support, such as special grants, will be provided to local governments actively working on price stabilization.
While the government noted a slight easing of geopolitical risks with declining international oil prices following negotiations to end the Middle East conflict, it acknowledged that rising raw material prices and supply chain uncertainties remain significant challenges.
Koo emphasized, "Just because the immediate waves have calmed does not mean the hidden reefs have disappeared," reiterating the need to focus 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 and expand eligibility to include charter buses. Measures for discount support, supply expansion, and relief for low-income and vulnerable groups will be announced soon.
Regarding the seventh oil price cap proposal, Koo stated, "We will discuss and review future operations based on the contents of the ceasefire agreement in the Middle East, trends in domestic and international oil prices, and the burdens on living costs and finances."
* This article has been translated by AI.
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