Gov't to supply record food stocks, expand discounts to stabilize prices ahead of Chuseok

This photo shows a large supermarket in central Seoul, Sept. 14 / Yonhap

The government said Monday it will release a record 172,000 tons of major food items and expand discount programs worth 90 billion won ($64.5 million) to help stabilize living costs and boost household consumption ahead of the Chuseok holiday next month.

The measures, finalized at a ministerial meeting presided over by Finance Minister Koo Yun-cheol, come amid concerns over rising prices of key holiday goods despite overall inflation remaining within the Bank of Korea's 2 percent target.

Under the plan, the government will supply 1.6 times the usual volume of major food items before the holiday and offer discounts of up to 50 percent on popular Chuseok gift sets, such as fruits and premium Korean beef, known as "hanwoo."

It will also operate about 2,700 direct-to-consumer markets nationwide to expand access to affordable goods.

"While signs of improvement in consumer sentiment are gradually emerging, it is crucial to spread this momentum to regional areas and small businesses," the Ministry of Economy and Finance said in a press release.

Meanwhile, the government unveiled measures to cut agricultural distribution costs by 10 percent by 2030 to ease burdens on producers and consumers, and stabilize fresh produce prices.

It plans to expand online wholesale markets, which now account for 6 percent of all wholesale transactions, to 50 percent by 2030, aiming to boost competition and enhance their public role.

The rate of distribution costs, which measures the gap between final consumer prices and producer receipts, rose to 49.2 percent in 2023, up from 45 percent a decade earlier, and they are often blamed for high, volatile agricultural product prices.

"The economy has shown signs of revival, with retail sales in July posting their largest increase in two years and five months," Koo said. "The government will continue all-out efforts to ensure that the hard-won economic recovery translates into tangible improvements in people's daily lives."