President Lee Jae Myung speaks during a meeting with senior presidential aides at the Blue House on May 7. [JOINT PRESS CORPS]
President Lee Jae Myung called price stabilization the government’s top priority on Thursday, warning that prolonged instability in global oil prices could weigh on consumer sentiment and a broader economic recovery.
“Inflationary pressure is growing as instability in global oil prices continues,” Lee said during a meeting with senior presidential aides at the Blue House in central Seoul.
“Now is the time to mobilize every available means to stabilize prices, while strengthening supply chain management for crude oil and key raw materials and ensuring the stable supply of major goods.”
The president also noted that consumer inflation in April accelerated from the previous month as petroleum prices surged more than 20 percent amid uncertainty surrounding cease-fire negotiations.
Despite such circumstances, Lee credited the government’s active price management for keeping “inflation relatively moderate compared to other major countries,” while stressing that the government must remain alert.
“If inflation continues, the shock to people’s livelihoods will intensify, and consumer sentiment will weaken, putting serious stress on an economic recovery,” Lee said.
The consumer price index last month stood at 119.37, up 2.6 percent from the same month a year earlier, according to a report by the Ministry of Data and Statistics released on Wednesday. The inflation rate rose 0.4 percentage points from March, marking the steepest increase since July 2024.
A gas station in Seoul on April 22 [YONHAP]
“Although no one knows how long the war will continue, how we overcome this crisis will shape the future of our economy,” Lee said. “Just as rain hardens the ground afterward, this crisis could instead strengthen the Korean economy.”
“I once again ask the public, businesses and the government to continue working together, as they have done so far,” Lee added.
The president also urged thorough preparations for the second round of relief payments for high oil prices and for the launch of the National Growth Fund later this month. The relief payment initiative is intended to offset the impact of rising living costs linked to the Middle East conflict.
“The first round of relief payments for high oil prices will end tomorrow,” Lee said. “Please thoroughly prepare and communicate with the public so that the second round, beginning on May 18, proceeds without any difficulties.”
Unlike the first round, which targeted vulnerable groups, the second round will cover the bottom 70 percent of income earners. Recipients in the Seoul metropolitan area will receive 100,000 won ($69) per person, while those outside the greater Seoul region will receive 150,000 won.
President Lee Jae Myung speaks during a meeting with senior presidential aides at the Blue House on May 7. [JOINT PRESS CORPS]
The president also ordered a comprehensive review before the launch of the National Growth Fund, which opens for investment on May 22. The fund aims to foster startups in strategic industries, such as AI, bio and semiconductors, with funds of up to 150 trillion won raised from both the private and public sectors, to be administered over the next five years.
“The world is currently engaged in a war without gunfire over leadership in future industries,” Lee said. “In this environment, active investment and participation by the public in advanced industries will provide new and dynamic momentum for our industries."
“The launch of the National Growth Fund will serve as a strong catalyst for expanding productive finance while contributing to the development of future advanced industries and stable asset growth for the public. I ask for proactive promotion of the initiative during the remaining period and a careful review of whether there are any institutional shortcomings," added Lee.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
댓글
0