Korean gov’t goes all-out to tame inflation

[Photo by Lee Seung-hwan]

The South Korean government has introduced a wide range of measures to address the issue of rising inflation.

The Ministry of Trade, Industry, and Energy said on Thursday that it will provide 304,000 won ($230) in energy vouchers to each of the vulnerable households starting this month until April next year.

The move comes as part of efforts to cope with increased heating demand during the winter. This is at the same level as last year.

Basic livelihood recipients and the near-poor will receive up to 592,000 won in gas bill discounts during the same period.

Vulnerable groups using kerosene or liquefied petroleum gas (LPG) will also receive similar discounts.

The support for heating costs in community centers where elderly people gather has been expanded compared to the previous year, covering 68,000 centers nationwide.

From this month until March next year, the centers will receive 50,000 won more per month, with a total monthly support of 370,000 won.

The ministry is also actively considering plans to further expand the scale of support for heating costs in consultation with the Ministry of Health and Welfare.

The measures come after Statistics Korea announced that the country’s consumer price index has reached over the 3 percent mark for three consecutive months.

The surge in international oil prices due to the Israel-Hamas war, coupled with a sharp increase in agricultural product prices, has caused the cost of living to soar, particularly affecting the lower-income population.

The CPI for October rose by 3.8 percent compared to a year ago, marking the highest level in seven months since March, when it reached 4.2 percent.

The living cost index, which reflects the perceived cost of living, increased by 4.6 percent compared to the same month last year, reaching its highest point in eight months since February when the tally stood at 5.5 percent. The surge in food prices, with a 5.8 percent increase, was a driving factor.