Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presides over the special cross-ministry task force meeting on consumer prices at Government Complex Seoul in Jongno-gu, Seoul, on Friday. [Ministry of Economy and Finance]
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presides over the special cross-ministry task force meeting on consumer prices at Government Complex Seoul in Jongno-gu, Seoul, on Friday. [Ministry of Economy and Finance]

The government plans to revamp the Price Stability Act to impose tougher economic penalties on hoarding, as renewed tensions in the Middle East stoke concerns over prices and supply chains. The overhaul would supplement the existing regime — which relies on corrective orders and criminal punishment — by introducing enforcement fines and administrative penalties, while also allowing seized goods to be quickly released to the market in emergencies.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a special cross-ministry task force meeting on consumer prices at Government Complex Seoul on Friday, where officials discussed a package of measures titled "Response to Price and Supply Chain Risks Related to the Middle East War and Future Tasks."

The government concluded that conventional tools alone are insufficient to manage prices as renewed Middle East tensions push up international oil prices and petroleum product costs while supply uncertainty persists for key raw materials. It plans to target consumer price growth of no more than 3 percent in the second half of this year, pursuing reforms to laws and systems alongside structural improvements to supply chains.

Sanctions against hoarding — which the government says aggravates price instability — will be significantly tightened. The government intends to amend the Price Stability Act in the second half of this year to allow the swift sale of seized goods when urgent supply is needed, and to introduce a new provision imposing enforcement fines on those who fail to comply with disposal orders.

In addition, administrative fines of up to double the illicit profits gained through hoarding will be levied. When illicit profits are difficult to calculate, a fine of up to 4 billion won ($2.7 million) may be imposed. A whistleblower reward system will also be introduced to strengthen monitoring of market-distorting conduct.

The supply chain response framework will also be structurally overhauled. The government will link tax incentives and subsidies to expand domestic production of economically critical items, and will increase both the number of items held in strategic reserves and the volume stockpiled. For goods that are difficult to produce domestically or stockpile, it will pursue overseas production bases and diversified import sources. A cross-ministry supply chain early-warning system will be established to detect signs of supply disruption early and coordinate a joint government response.

The government aims to shift its supply chain policy from reactive crisis management to proactive prevention and ongoing oversight. It plans to restructure the supply chain framework around four pillars — promoting domestic production, expanding reserves, building overseas production bases and diversifying import sources — to strengthen resilience against recurring external shocks.

"The government will stay vigilant at all times and focus every resource on minimizing the burden on the public," Koo said. "We will introduce an amendment to the Price Stability Act in August to root out market-distorting conduct such as hoarding, and will continue to strengthen both the supply chain response framework and the effectiveness of price-stability measures."


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