The Deputy Prime Minister and Minister of Economy and Finance, Choo Kyung-ho (추경호), summoned the First Economic Ministerial Meeting1 on May 30 to discuss the stabilization of people’s livelihood issues. On food aspect, the authority found common ground in reducing the tariff on imported food and providing financial subsidies in order to decrease the cost of food raw materials and stabilize the food prices.
The details are as below:
Food | Detailed Policies |
Imported edible oil (soybean oil, sunflower seed oil), pork, wheat, wheat powder, processed egg product, and root vegetables for feed | Additionally applying a tariff rate quota of 0% to the object foods till the end of the year. |
Imported coffee beans and cocoa beans | Temporarily exempting the import VAT (value added tax) of the object foods until 2023, aiming to lower 9% of raw material cost. |
Duty-free agricultural products | Increasing 10% of tax deduction allowance for duty-free agricultural products (from 40~65% to 50~75%) till 2023. |
Kimchi, soybean paste, pepper paste, soy sauce, pickled seafood, pickled radish, pickled vegetable, boiled vegetables, etc. individually packaged in bottle, can, etc. | Exempting the VAT (10%) of the object foods till 2023, as well as providing consumers with discount coupons for buying agricultural, livestock, and fishery products (10,000 won per capita) |
Wheat powder and feeds | Providing with financial subsidies. |
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