Tariffs on chicken, meat, and dairy products are about to be abolished in order to deal with a supply shortage in the domestic market, and, thus, to stabilize consumer prices.
The Cabinet held a meeting and approved such measures Tuesday morning so that the exemptions can be applied as early as the end of this week.
The items include chicken, milk, and pork belly since Korea was forced to cull or bury millions of livestock due to the outbreak of foot-and-mouth disease and avian influenza in recent months. Tariffs on basic food ingredients such as flour as well as other raw materials will also be lowered or abolished amid rising global commodity prices.
And later on in the day, a price stabilization meeting was held in which related ministries decided to improve transparency and to encourage price competition in the oil industry along with providing incentives for local governments that have successfully maintained low public utility charges.
To tackle high agricultural product prices, the government plans to sell 30-thousand tons of rice reserves on top of the 200-thousand tons that were harvested back in 2009.
And regarding the reduction of telecommunication fees a task force is scheduled to announce its report within this month.
[Reporter : Choi Won-young
email@example.com] "The government hopes these measures would calm down the high inflation here in Korea which have been staying above the four percent mark since January.
Choi Won-young, Arirang News."