Seoul to continue efforts to tackle consumer price hikes amid Middle East war

Seoul to continue efforts to tackle consumer price hikes amid Middle East war By Kang Yoon-seung SEOUL, May 20 (Yonhap) -- South Korea's finance ministry said Wednesday the government will roll out efforts to stabilize consumer prices amid the prolonged Middle East war, building on its economic achievements made during the first year of the current administration. First Vice Finance Minister Lee Hyoung-il announced the plan during a Cabinet meeting held in Seoul ahead of the upcoming first anniversary of President Lee Jae Myung taking office, according to the Ministry of Finance and Economy. During the Cabinet meeting, the vice minister said South Korea promptly overcame the aftermath of the botched martial law bid in late 2024, with the economy expanding 1.7 percent in the January-March period from a quarter earlier. In a report, the finance ministry said the government stabilized living costs and pursued an industrial transformation led by artificial intelligence (AI) technologies, while working to revitalize the financial market. Based on those efforts, the finance ministry said eight major global investment banks have projected South Korea's economy to grow 2.6 percent in 2026, raising their previous estimate of 2.1 percent. South Korea's main stock market has become the world's eighth largest, up from 13th place in June 2025, the ministry said. "Considering these strong fundamentals, major credit rating agencies have maintained the country's ratings at stable levels, indicating that other countries are giving positive assessments of the South Korean economy," the ministry added. The finance ministry said it will continue efforts to bolster economic growth under the principle of "pragmatism and performance," and ensure that the achievements are shared with the public. In terms of consumer prices, the vice minister said the government has eased price pressure by taking preemptive measures, such as capping gasoline prices. "Since February this year, the government has been operating an interagency task force on consumer prices under the president's order," the vice finance minister said. "We will take stern action against unfair business practices and stabilize prices in sectors closely linked to everyday life, such as school uniforms, maintenance costs, cram school tuition and telecommunications fees," he added. colin@yna.co.kr (END) - BTS to headline halftime show at 2026 World Cup final - (LEAD) Teenage pianist Son Se-hyeok wins Prague Spring competition - (Yonhap Interview) 'Wars have limits,' but 'blatant disregard' for rules growing: ICRC Korea head - Teenage pianist Son Se-hyeok wins Prague Spring competition - Supernatural horror 'Salmokji' becomes most-watched Korean horror film - (LEAD) Teenage pianist Son Se-hyeok wins Prague Spring competition - SeMA retrospective revisits works of abstract art master Yoo Young-kuk - (Yonhap Interview) 'Wars have limits,' but 'blatant disregard' for rules growing: ICRC Korea head - (2nd LD) Trump arrives in Beijing for summit talks with Xi on trade, Iran, Taiwan, other topics - (URGENT) U.S., China agree Strait of Hormuz must remain open during Trump-Xi summit: White House official - (LEAD) Starbucks Korea chief fired over 'Tank Day' event on pro-democracy anniv. - (7th LD) Lee, Takaichi agree to boost cooperation in supply chains, procurement of crude oil, LNG - (5th LD) Lee, Takaichi agree to boost cooperation in supply chains, procurement of crude oil, LNG - Japan PM Takaichi heads home after 2-day visit to Andong, summit with Lee - Starbucks' U.S. headquarters also apologizes over 'Tank Day' event in S. Korea