S. Korea to further lower tariffs on imported food items to curb inflation
Finance Minister Choo Kyung-ho said Tuesday the government will push to cut tariffs on more kinds of imported food ingredients, such as coffee and raw sugar, next year to curb inflation and ease burdens on the people, Yonhap reports.
It is also actively reviewing measures to better ensure consumers' right to know in response to growing cases of "shrinkflation," which means companies' reduction of the quantity of their products while freezing prices without consumers' knowledge.
Effective Tuesday, the government lowered tariffs on a total of 10 kinds of imported fruits and fresh food items, including bananas, mangoes, butter, powdered milk, cheese and chicken, as it has sought to apply tariff-rate quotas on various food imports to fight inflation.
"We will additionally push to lower tariffs on other major food ingredients next year, and will swiftly implement tax exemption and other measures to reduce burdens on importers," Choo said during a visit to a local discount store in Seoul to monitor prices, and listen to retailers and consumers.
Choo cited corn, soybeans, raw sugar, potatoes and sunflower oil as candidate items for lower taxes next year.
"Global oil prices have fallen, and prices of agricultural products have shown signs of stabilization recently, though uncertainties remain regarding instability in the Middle East and weather conditions," Choo said.
"We put curbing inflation as a policy priority and will continue to implement countermeasures," he added.
The government has extended supplies of cabbage, bay salt and other agricultural products, and offered a discount during the annual kimchi-making season.
Cabbage is a key ingredient of kimchi, and the annual traditional of "gimjang" usually takes place from November to December as people make large amounts of kimchi as part of preparations for the cold winter.
Speaking of shrinkflation, Choo said such practices are far from fair and sustainable.
"Companies need to let consumers know of any adjustment to their products. The government is reviewing measures to let the people know of such changes in consultation with the Fair Trade Commission and other relevant agencies," Choo said.
Recently, some food companies have been criticized for downsizing the size or quantity of their products while keeping prices unchanged without any notice.
In October, South Korea's consumer prices, a key gauge of inflation, rose 3.8 percent from a year earlier, with its on-year growth gaining pace for the third consecutive month, according to government data.
The finance ministry has said that inflationary pressure is forecast to be eased at a slower pace due to global geopolitical tensions and greater volatility in global oil prices.
The price of Dubai crude, South Korea's benchmark, fell to US$84.88 per barrel on average in November from this year's high of $93.25 in August and $89.75 in September, government data showed.
