Finance chief urges firms to refrain from hiking goods prices to curb inflation
Finance Minister Choo Kyung-ho / Yonhap
The finance minister called on local companies Thursday to refrain from hiking prices of products, and wages, as the move could add upward pressure to already high inflation.
Finance Minister Choo Kyung-ho made the call during his first meeting with the heads of six business lobby groups at a time when inflationary pressure has mounted amid soaring fuel and food costs.
"We hope companies can digest factors that cause price hikes as much as possible through ways to enhance productivity and other means," Choo said.
Korea faces growing inflationary pressure as crude oil and other commodity prices have risen due to the protracted war between Russia and Ukraine and global supply disruptions. Demand-pull inflation has also increased amid the economic recovery.
Inflation growth is widely expected to exceed 5 percent in the coming months. Consumer prices spiked at 4.8 percent year-on-year in April, the fastest rise in more than 13 years.
Meanwhile, Choo welcomed large firms' latest plans to increase investment, vowing the government will promote policies to create a business friendly environment.
"The government plans to revise corporate and inheritance taxes in an effort to help companies take the initiative in investment and job creation," he said.
Korea's top-five family-run conglomerates ― Samsung, Hyundai Motor, SK, LG and Lotte ― and other major business groups have unveiled plans to invest a combined 1,084.6 trillion won ($886 billion) over the next three to five years.
To put that into perspective, the Korean government's 2022 budget came to a record 607.7 trillion won. (Yonhap)