Korea to freeze electricity, gas prices in second half of year, finance minister says

The government will freeze major public utility rates — including electricity and gas — for the second half of the year, Finance Minister Koo Yun-cheol said Friday during a meeting with economy-related ministers. 

The government-set cap on oil prices will thus remain for the seventh time, though it will be lowered from its current level. 

"The government will adjust the emergency measures currently in place in phases by closely monitoring developments in the Middle East and the Korean economy," Koo said. Specifics of the oil cap are slated to be announced on Friday afternoon. 

In March, the government introduced fuel price caps in a bid to stabilize domestic fuel prices amid supply chain disruptions caused by the conflict in the Middle East.

Koo noted external uncertainties have been gradually easing following the memorandum of understanding between Washington and Tehran.

"However, as uncertainties remain surrounding follow-up negotiations, burdens on the public, such as high consumer prices, the weak Korean won, high interest rates and slowing employment, continue," he said. "The government is making proactive efforts to stabilize and improve people's livelihoods, while making full-fledged efforts to normalize and advance the economy following the war in the Middle East." 

He added that the government would deploy all available resources — including 1 trillion won in fiscal support for small business owners hit by high fuel prices — to keep consumer price inflation within 3 percent in the second half of the year.

To stabilize egg prices, which have risen from around 6,000 won ($3.88) to over 7,000 won due to an avian influenza outbreak that began late last year, the government plans to import an additional 200 million eggs — more than six times the current import volume.

Next month, the government will also send a special envoy to Norway to directly import 2,000 tons of Norwegian mackerel for sale at low prices. Domestically produced mackerel earmarked for export will be purchased directly by the government and supplied to consumers at half price, he said.

BY SHIN HYE-YEON, YONHAP [[email protected]]