More tariffs to be slashed, beef, chicken and green onions included

Economy

Published: 08 Jul. 2022, 13:54

More tariffs to be slashed, beef, chicken and green onions included

President Yoon Suk-yeol, third from left, heads a government economic emergency meeting on Friday. He plans to hold the meeting every week as Korea faces a major economic crisis stemming from inflation. [YONHAP]

More tariffs are to be cut as the government struggles to keep inflation in check.

The items added to the list include beef, chicken, green onions, coffee beans and powered milk.

"Since our administration started, four times we have introduced measures to help the public with rising consumer prices," President Yoon Suk-yeol said during his first emergency economic meeting on Friday. "We have been trying to stabilize the prices of major essential goods."

Despite the government's efforts, he said the situation will remain difficult.

"Low-income and vulnerable households are hit the hardest," he said. "The government is completely committed to stabilizing the situation."

With inflation running at 6 percent, the won dropping and stocks down, Yoon said he will call an emergency meeting on a weekly basis.

The government has zeroed in on expanding support for lower-income households most vulnerable to rising consumer prices.

It applied a zero duty to 50,000 tons of imported pork from June 22.

Starting July 20 and until the end of the year, tariffs will be lifted on 100,000 tons of imported beef. The tariff on imported beef is 40 percent. Due to free trade agreements, the rate for U.S. beef is 10.6 percent and Australian beef 16 percent.

Last year, 250,000 tons were imported from the United States, 179,000 tons from Australia, 20,000 tons from New Zealand and 10,000 tons from Canada.

The government expects that the lifting of beef tariffs will bringing down the retail price between 5 and 8 percent.

It is also exempting tariffs on 82,500 tons of imported chicken. Currently, a tariff between 20 and 30 percent is applied. Almost all imported chicken is from Brazil and Thailand.

The 176 percent tariff on powdered milk will be eliminated on 10,000 tons through the end of the year. The government hopes that the lifting of the tariff will lower the prices of baby formula, pastry and confectioneries.

Energy vouchers for low-income families will be increased from 172,000 won to 185,000 won starting in October. Monthly subsidies for diapers will be raised from 64,000 won to 70,000 won, while the baby formula subsidy will be raised from 86,000 won to 90,000 won.

Between August and December, the price of government-supplied grain offered to lower-income households will fall from 10,900 won per 10 kilograms to 7,900 won.
The fuel tax subsidy may also be increased. The cut is now 37 percent.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]