1. ECONOMIC ISSUES

Gov’t anti-inflation efforts get coordinated [English, KJH]

 

Bahk Jae-wan, minister of Strategy and Finance, participates in an economic policy meeting yesterday at the Government Complex in Jongro, central Seoul. [YONHAP]

Full Text: Korea will step up intragovernmental cooperation to provide coordinated policy measures in its ongoing anti-inflation efforts, the nation’s top economic policymaker said yesterday.

“Not just the Finance Ministry but also other related ministries will join hands and come up with reasonable measures, if needed, by closely analyzing price trends of major items that show price instability,” Finance Minister Bahk Jae-wan told an economic policy coordination meeting.

“And the government will toughen the punishment level on violations of the nation’s fair trade laws and boost competition [to lower prices] by easing market-entry regulations.”

As for worries about oil price hikes after refineries withdraw their temporary price cuts early next month, Bahk called for policy coordination and a “unified voice” for its people in order to reduce confusion about the government’s follow-up measures.

In April, the nation’s major refineries temporarily reduced their oil supplies by 100 won per liter ($0.35 dollars per gallon) in order to ease soaring gasoline and diesel prices. The government price cut will end July 6.

In particular, Bahk singled out the high cost of eating out, saying that the government is keeping an eye on excessive price hikes by restaurants compared with increased food costs.

His remarks are in line with the government’s continued push to bring inflation under control as high prices could undercut the nation’s economic recovery. Consumer prices jumped 4.1 percent in May from a year earlier, much higher than the government’s annual target of around 3 percent inflation.

2. MARKETING ISSUES

European Wine Offered at ‘Half Price in Lotte Mart [Korean, OSY]

http://www.hankyung.com/news/app/newsview.php?aid=2011063074951&sid=0106&nid=006&ltype=1

3. OTHER MISCELLANEOUS ISSUES

 “Cherry Day” Event Promotes Northwest American Cherries [Korean, OSY]

http://news.donga.com/Economy/Market/3/0108/20110630/38450374/1

Open Price Regulation to be Abolished on Snack, Instant Noodle, Ice Cream, and Frozen Desserts [Korean, OSY]

http://kr.news.yahoo.com/service/news/shellview.htm?linkid=443&articleid=2011063017271345402&newssetid=5

Summary: Ministry of Knowledge & Economy announced that processed food products (snack food, instant noodle, ice cream, and frozen dessert) will be droped from the open price regulation.  The government introduced the open price regulation one year ago and banned 279 consumer goods, including the four processed food products, from carrying ‘recommended retail price’ on the label to encourage price competition in the market.  However, contrary to the policy goal, market price of the four processed food rose significantly after open pricing, and many consumers have complained about having no reference price when shopping.