Gov't to issue discount coupons for farm produce before Lunar New Year holiday

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Gov't to issue discount coupons for farm produce before Lunar New Year holiday

Published: 16 Jan. 2024, 10:07

KIM JU-YEON
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Prices for fruit gift baskets sold by supermarkets for the Lunar New Year have risen on-year by an average of 20 to 30 percent and by up to 60 percent, as Asian pear and apple prices jumped. Gift fruit boxes are on display at a supermarket in Seoul. [YONHAP]

The government plans to set aside a record budget for issuing discount coupons for farm produce and boost their supplies before the Lunar New Year holiday amid high produce prices.

The government also decided to set up and operate a team tasked with checking the prices and supplies of major high-demand goods in an effort to support the people's livelihoods in the run-up to the extended holiday from Feb. 9 to 12, the Finance Ministry said Tuesday.

Demand for vegetables, fruits and other foods usually rises in Korea before the Lunar New Year and Chuseok holidays as people prepare holiday meals for family gatherings and memorial services.

According to the plan, the government vowed to spend an all-time high of 84 billion won ($63.52 million) to provide discount coupons for the purchase of farm, livestock and fisheries goods.

It will release reserved stocks of vegetables, fish and bay salt and will boost the imports of eggs.

"The prices of apples, pears and other items remain high as their production is not sufficient due to weather conditions and other issues. The government aims to keep any increase in prices at the single-digit level and will enhance monitoring in cooperation with private entities," a ministry official said.

Inflation has been moderating, but the pace has been more gradual than earlier expected, according to officials.

In December, consumer prices, a key inflation gauge, rose 3.2 percent on-year, the fifth consecutive month that the prices have stayed above the 3 percent level.

The government decided to raise the cap on the monthly purchase of Onnuri coupons, which are used to pay for goods at traditional markets and small shops at a discounted price, to 2 million won from the current 1.5 million won.

The total amount of Onnuri coupons to be issued this year will be increased from 4 trillion won to 5 trillion won.

Small merchants with annual sales of 30 million won or below will receive 200,000 won in subsidies for their electricity bills.

The government will reduce interest payments on loans from nonbank financial institutions for small business owners and self-employed people. Around 400,000 people are expected to be eligible for the reduction of up to 1.5 million won.

It will extend an electricity rate freeze for 3.65 million households in vulnerable groups, according to the ministry.

The measures also include issuing discount coupons for accommodations in non-metropolitan areas to encourage domestic tourism.

Expressway tolls will be waived during the holiday period, while KTX and SRT train tickets will be offered at a discount of up to 30 percent for people traveling from the provinces to the capital area, the ministry said.

BY YONHAP [[email protected]]