Press Release

Press Release
Release Date	10:00 am on August 19, 2014 (Tuesday)
Distribution  Date	8:30 am on August 19, 2014 (Tuesday)	Contact Division	Price Policy Divison of Economic Policy Bureau
Manager	Dae Hee LEE	Deputy Director	Jae Hwa LEE

 

Announcement of government-wide measures for public welfare stability ahead of Chuseok[1]

□ Ahead of Chuseok holiday which runs from September 7 to September 9, the government announced 「measures for public welfare stability」 developed by related authorities, including the Ministry of Strategy and Finance and approved by a cabinet meeting on Tuesday, August 19, 2014.

□ Korean economy shows slow recovery in domestic market such as spending and investment. In particular, the economic sentiment of Korean people who work in traditional markets or who are self-employed micro businesses is even more worrisome.      

ㅇ While consumer price inflation remains stable at the 1% level, some show concerns about rising inflation during the holiday period, for instance, in agricultural and livestock products due to the fact that this Chuseok is the earliest in 38 years (September 8) as well as variable weather conditions, including a typhoon season.

□ In responding to these concerns, the government has prepared “Measures for public welfare stability” to make sure that Korean people can have a safe and pleasant Chuseok holiday.

 

 

< Outline for Measures for Public Welfare Stability>

Active management to stabilize demand and supply of seasonal products in high demand during the holiday period to support Korean people

Public welfare stability by supporting Korean people as well as small and medium-sized enterprises

Citizens’ safety enhancement by strengthening accident prevention and disaster response

Making a happier society by promoting vulnerable and less privileged people

Improving services for citizens by preparing traffic, transport and harbor policies 

Supporting safe holiday with respect to food safety

□ Highlights of Measures for public welfare stability ahead of Chuseok

① Chuseok with stabilized inflation for Korean people: facing an early arrival of Chuseok holiday and the possibility of typhoon, a special investigation on prices will be conducted and the supply volume will be increased.

  - Selection of 28 special items, including daily necessities and seasonal products in high demand during the Chuseok holiday and setting up of its monitoring period (daily price survey from August 20 to September 5)   

  - Increasing of supply volumes by more than 1.5 times than usual (from 7 800 tons to 12 000 tons per day) of 15 items, including Korean cabbage, apples, agricultural, livestock and fishery products (during special supply period from August 20 to September 5)  

  - Taking preventive measures against the typhoon to various scenarios with emergency transportation plan or early shipment planning and shifting consumer demand toward unaffected products   

② Chuseok with fewer burdens for Korean people and SMEs: to ensure that Korean people and SMEs have a pleasant holiday, financial support and tax return will be carried out.   

  - New funding of 20.9 trillion wons (4.3 trillion wons increase compared to last year’s 16.6 trillion wons) from government debt institution for smooth financing during the Chuseok holiday period

  - Supporting small businesses and those who work in traditional markets with a promotion of the Onnuri gift certificate through extension of special discount* and with a promotion encouraging government and public institutions to purchase more goods from traditional markets

   * 10% special discount period: from August 30 while stocks last (limit of 100 billion won) which is expected to be early September

   - Asking employers to pay subcontractors and overdue wages before the holiday starts and implementing tax support* for SMEs struggling to make ends meet

   * Early refund (before the beginning of the holiday) of work incentive, customs duty, income tax, VAT and extension of due date for corporate tax and income tax payments

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[1] Korean Thanksgiving Day

20150907

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