Koo Yun-cheol freezes electricity, gas rates for second half; maintains oil price cap

The government will freeze major public utility rates — including electricity and gas — in the second half of the year, while partially lowering the oil price cap but keeping the system in place until petroleum consumer prices stabilize.

To ease the inflationary burden from high oil prices, the government will also commit 1 trillion won ($650 million) in support for small business owners and expand the supply of everyday food items including eggs and mackerel.

Deputy Prime Minister and Finance Minister Koo Yun-cheol chaired a joint session of the Emergency Economic Headquarters, the ministerial economic affairs meeting, and the task force on special management of living costs at the Government Seoul Building on Friday, announcing that "major public utility rates, including electricity and gas, will be frozen in the second half."

"The government is doing everything it can to stabilize and revive the livelihoods economy, while also preparing in earnest for economic normalization and a new leap forward following the Middle East war," Koo said. "We will closely monitor the Middle East war and our economic conditions, and adjust emergency response measures in a phased manner."

The government also announced the seventh round of oil price caps on Friday. "We will lower the oil price cap from its current level, but maintain the system until petroleum consumer prices stabilize," Koo said.

The government set a target of keeping consumer price growth below 3 percent in the second half. To that end, it plans to continue price-stabilization measures, including committing 1 trillion won in fiscal support for small business owners struggling with high oil prices.

The government also unveiled measures to stabilize food prices. To bring down egg prices, it will import an additional 200 million fresh eggs — more than six times the existing import volume.

The government also plans to dispatch a special envoy to Norway next month to directly import 2,000 tons of Norwegian mackerel, while buying up domestically produced mackerel earmarked for export and supplying it to consumers at roughly half the market price.