Discount shopping coupons offered by government, stockpiles released

Economy

Published: 11 Aug. 2022, 16:16 Updated: 11 Aug. 2022, 18:28

Discount shopping coupons offered by government, stockpiles released

President Yoon Suk-yeol speaks with a customer at the fresh produce section of Hanaro Mart in Yangje on Thursday. [YONHAP]

Discount coupons will be issued by the government and stockpiles released in order to keep prices low amid the worst rainfall in a century and ahead of the holiday season.

A total of 65 billion won ($50 million) of coupons for agriculture, fishery and livestock products will be disbursed, with public funds covering the discounts.

"We need to control rising consumer prices," President Yoon Suk-yeol said Thursday at a Hanaro Mart in Yangje, Seoul.

Holders of the coupons will get 20 to 30 percent off, to a maximum of 30,000 won for agriculture and livestock goods and up to 40,000 won for fishery products purchased at traditional markets. They can be used at large supermarkets and small shops.

The total amount of support is up from the 34 billion won last year.

"People are in difficulty due to rising consumer prices and the torrential rain," Yoon said. "The government needs to do all it can so that people in difficult situations can spend warm times with families during Chuseok."

When added to discounts provided by the retailers themselves, the total discount could be as much as 40 percent, the government argues.

Stockpiles of 20 goods held by the government will be released between Aug. 18 and Sept. 8. The goal is to lower prices 7.1 percent from current levels.

This includes 5,890 tons of Napa cabbages, 4,940 tons of radishes, 14,000 tons of apples, 21,000 tons of beef and 61,222 tons of pork.

That's as much as triple the size of its normal release into the private market.

Custom duties on onions will be reduced from 50 percent to 10 percent through the end of the year, while the duty on imported modified potato starch will be taken from 8 percent to zero percent.

Inflation has been running at above 6 percent, a 24-year high. Agricultural goods inflation hit 24 percent last month.

Rental housing will be supplied for up to two years to people who lost their homes in the flood. The housing units will be provided until their houses are restored.

The Ministry of the Interior and Safety will be using 74.8 billion won from the government disaster emergency budget to rebuild damaged properties.

The Ministry of Trade, Industry and Energy will be cutting or suspending utility bills. The Minister of Science and ICT will be suspending charges on landline calls and cutting internet fees by 50 percent.

The post office will provide six months of free deliveries of emergency items provided by organizations such as the Red Cross.

The Ministry of SME and Startups will be providing loans to small businesses that were affected by the rain either through state-owned financial institutions or with the help of private banks.

Business owners will be eligible to apply for loans of up to 70 million won with a fixed rate of 2 percent.

Once approved, payments will be deferred for two years.

A similar loan with a maximum of 1 billion won with a 1.9-percent rate will be offered to SMEs affected by the rain.

The National Tax Service will be suspending up to nine months of taxes, including income taxes, value-added taxes and corporate taxes, for those who are struggling from damage cause by the rain.

If more than 20 percent of the business assets were lost from the rain, the tax agency will suspend audits through the end of the year.

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