Discounts, utility bill cuts and fees waived for Lunar New Year

Lunar New Year gift on sales at a department store in Seoul. [YONHAP]

Billions of won of taxpayer money is to be transferred to retailers so that items can be discounted during the Lunar New Year holiday, which runs from Jan. 21 to Jan. 24.

Prices will be cut up to 60 percent, up to 20 percent from the government and up to 40 percent from the large retailers. The program starts Wednesday and will run through Jan. 25.

A total of 16 items will be discounted, including apples, pears and pork, and a total of 30 billion won ($ 23.6 million) of funds are being made available for the program.

“Despite the serious increase in consumer prices throughout last year, with the higher costs being absorbed by farmers, companies and consumers, consumer prices have stabilizing lately,” said Finance Minister Choo Kyung-ho during the government’s economic meeting on Wednesday. “While we expect inflation to decline overall this year, for the time being the high inflation is likely to remain for the time being.”

“The government will strengthen its policy support to stabilize consumer prices,” Choo added.

To further reduce prices, inventory will be released from stockpiles of the 16 items through Jan. 20. It will be the largest single release from the stockpiles ever.

The planned release of 18,000 tons of apples is three times normal.

Other measures announced included an increase in energy support for low-income families.

The government plans to allocate 118.6 billion won for lowering the electricity bills for 3.4 million households that live on basic income and people with disabilities.

He especially noted the difficulty that many low-income households will likely face with the significant increase in electricity bills in a high interest-rate environment.

Qualifying households will be billed at the same rate as the previous year for 313 kilowatt-hours of electricity a month. The higher rate will be applied to usage above 313 kilowatt-hours.

It represents a savings of about 11.5 percent.

Energy vouchers for low-income households have been raised from 185,000 won to 195,000 won this year. The discount on gas bills given to low-income families, which is currently between 6,000 won and 24,000 won, will be raised to between 9,000 won and 36,000 won.

The government also plans to provide 39 trillion won of financing, including loans and guarantees from state-owned banks and commercial banks, to SMEs that might be in difficult financial situations. Problems might include failing to receive payments and not being able to provide gifts or bonuses to employees for the Lunar New Year holidays.

Expressway tolls will be waived between Jan. 21 and Jan. 24, and palace admittance will be free of charge during this period. Parking at all government parking lots will be free.

Public transportation will be increased over the holiday. Details will be announced on Jan. 18.

The government will provide real-time information on medical facilities, including hospitals and pharmacies, that are open during the holidays and schedules for government-run daycare centers for working parents and single parents.

The Animal and Plant Quarantine Agency website will provide information on vets that are open while accepting information on pets that have been lost or abandoned.

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