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Korea extends tariff relief on energy and food to ease burden on households

Published: 02 Dec. 2024, 09:48 Updated: 02 Dec. 2024, 13:37

Finance Minister Choi Sang-mok speaks during a press briefing in Seoul on Nov. 28. [MINISTRY OF ECONOMY AND FINANCE]

Korea plans to extend its tariff rate quota on energy and food imports into part of next year to help ease the burden on households, the finance ministry said Monday, as the nation continues to struggle with high inflation and a strong U.S. dollar.

The tariff rate quota system allows a specified volume of imports to enter the country under reduced tariff rates for a specific period of time.

Under the initiative, the zero-tariff policy for liquefied natural gas imports, used for power generation and household heating, will be extended for three additional months, starting Jan. 1, 2025, the ministry said.

Tariffs on oil imports used to produce liquefied petroleum gas, primarily for residents in rural areas, will be reduced from 3 to 0 percent through the first half of the year, the ministry said. The possibility of extending the reduction for the second half will be reviewed later.

Food items currently covered by emergency tariff rate quotas due to price instability, such as cocoa beans, coffee and orange concentrate, will continue to benefit from favorable tariff rates, according to the ministry.

The tax policy adjustment is the latest in a series of government-led efforts to stabilize prices, addressing concerns that surging energy and food costs could disproportionately impact low- and middle-income households.

Yonhap