The government is considering declaring parts of South Gyeongsang Province, including Geoje and Tongyeong, special disaster zones following severe damage from heavy rainfall.

The government plans to roll out livelihood stabilization measures in response to the heat wave and torrential rains, strengthen energy and supply chain management amid Middle East uncertainty, and extend by two months a ban on hoarding urea solution and syringes set to expire at the end of this month.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presides over a joint emergency economic headquarters, economic ministers and consumer price management task force meeting at Government Complex Seoul in Jongno-gu, Seoul, on Thursday. [Ministry of Economy and Finance]
Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presides over a joint emergency economic headquarters, economic ministers and consumer price management task force meeting at Government Complex Seoul in Jongno-gu, Seoul, on Thursday. [Ministry of Economy and Finance]

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol chaired a joint emergency economic headquarters, economic ministers and consumer price management TF meeting at Government Complex Seoul on Thursday. He said the government would "mobilize all available means, including reviewing the declaration of special disaster zones, to actively support the swift recovery of residents in affected areas" following record-breaking heavy rains centered on Geoje, Tongyeong and other parts of South Gyeongsang Province.

The government said related ministries would mount an all-out joint effort to stabilize prices for agricultural, livestock and fishery products, as the successive heat wave and heavy rains have increased the burden on household grocery bills.

A livelihood stabilization package — including large-scale discount events ahead of the Chuseok holiday — is also being prepared. Related ministries will jointly address disruptions to the retail order, including unfair trade practices and price-fixing by dominant platforms and various forms of consumer deception.

On the broader economic situation, Koo said major institutions have been raising their growth forecasts for the South Korean economy to the 3 percent range, reflecting a sharp rise in exports. He added that external soundness remains solid, with the ratio of short-term external debt to foreign exchange reserves holding steadily in the low-40 percent range and the credit default swap premium actually falling below pre-Middle East war levels.

However, Koo said uncertainty surrounding the Middle East is rising again. "The 60-day ceasefire MOU negotiation deadline between the United States and Iran has expired, and uncertainty over the Middle East war is expanding again," he said, adding that the government would review its emergency response measures and adjust them flexibly to changing circumstances to ensure energy and supply chain stability.

Taking into account the recent rise in international oil prices and the burden on household finances, the government plans to announce the ninth petroleum price ceiling — effective from midnight Saturday — at 7 p.m. Friday.

The ban on hoarding urea solution and syringes, set to expire at the end of this month, will be extended by two more months. However, the criteria for determining hoarding — including storage thresholds — will be eased in light of improved urea solution import conditions following China's allocation of export quotas. The storage threshold for urea solution will be raised from exceeding 150 percent of the previous year's average monthly sales volume to exceeding 200 percent. The criteria related to syringes had already been eased on July 24. The government also plans to monitor prices and supply conditions for key essential items such as naphtha.

Meanwhile, with this week marking the Ulchi civil defense exercise period, the government conducted a wartime economic ministers' meeting drill at Thursday's session, simulating a national emergency and reviewing response systems. Koo said the current situation — with the Middle East war and resulting global supply chain instability continuing — "clearly illustrates that security is the economy, and the economy is security."


y2k@heraldcorp.com