Youth New Deal to be fast-tracked; agentic AI education to be pursued

Tariff-rate quota expansion for farm and fishery products to address food prices

Support for vulnerable borrowers and import firms to counter exchange rate volatility

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said Tuesday that the government would lower the ceiling under the oil price cap system and consider additional policy options if necessary.

Koo made the remarks at a Cabinet meeting after briefing ministers on emergency government operations and response measures related to the Middle East war. "We are reviewing how best to operate the price cap system, taking into account international oil price trends and overall inflation levels," he said.

President Lee Jae Myung questions Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol after his ministerial briefing at a Cabinet meeting and emergency economic review session held at Cheong Wa Dae on Tuesday. [Yonhap]
President Lee Jae Myung questions Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol after his ministerial briefing at a Cabinet meeting and emergency economic review session held at Cheong Wa Dae on Tuesday. [Yonhap]

President Lee Jae Myung said at the meeting that rising global oil prices need not block fuel tax cuts, noting that excess tax revenue — driven largely by the semiconductor sector — would cushion the fiscal impact. "It seems we need to be a bit bolder — keep the oil price cap in place longer and bring the ceiling down further," Lee said.

In his briefing, Koo warned that fallout from the Middle East war was fueling serious concern about rising prices, slowing employment and broader hardship for ordinary households. "We will maintain a high level of vigilance and mount an all-out response across the four key areas of prices, employment, exchange rates and interest rates," he said.

On price stability, the government said it would focus policy efforts on managing energy and food costs. Planned measures include cuts to the LPG fuel tax, an extension of the diesel price-linked subsidy and a reduction in tariff rates on energy imports. For the second half of the year, the government also plans to expand tariff-rate quotas on agricultural, livestock and fishery products, step up on-site inspections, broaden discount support programs and increase stockpiles and supply volumes.

The government said it would move proactively to head off price spikes in farm and fishery products caused by summer heat waves and heavy rains, with the aim of minimizing food price instability.

On employment, the government said it would strengthen youth job measures by fast-tracking Youth New Deal initiatives from July, identifying additional and new projects, and launching job-creation programs that connect young talent with corporate demand — including through agentic AI education.

"For sectors where employment conditions are particularly poor — manufacturing, construction and agriculture and forestry — we are analyzing the situation and developing tailored measures," Koo said.

On exchange rates and interest rates, the government said it would strengthen market monitoring and implement stabilization measures as needed, while also pursuing structural reforms including improvements to the non-deliverable forward trading system.

In addition, the government said it would prepare support measures for vulnerable borrowers and sectors burdened by high interest rates and a weak won, and would review ways to assist small and midsize import businesses.


y2k@heraldcorp.com