President Lee Calls for Lower Oil Price Caps to Ease Consumer Burden

President Lee Jae-myung has urged the government to maintain and even lower the cap on oil prices, aiming to alleviate the financial strain on citizens from rising fuel costs. Speaking at a State Council meeting, Lee proposed utilizing the surplus tax revenue expected from sectors such as semiconductors to reduce fuel taxes.

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We should maintain the maximum oil price system and lower the maximum price further.

"Given the surplus tax revenue we anticipate from semiconductors and other areas, lowering oil taxes would not significantly burden the national treasury," Lee stated. He argued that such a measure would directly benefit citizens by increasing their disposable income and boosting consumption.

In addition to fuel price measures, President Lee directed his administration to explore further income support policies for low-income households. He acknowledged the growing income disparity, noting that even the stock market is seeing gains concentrated in large, stable companies. "As inflation is high and income polarization is severe, we must research income support measures," Lee emphasized.

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Given the surplus tax revenue we anticipate from semiconductors and other areas, lowering oil taxes would not significantly burden the national treasury.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho confirmed that existing budgets and up to 20% of fund allocations could be re-purposed to secure funds for supporting low-income individuals, even if new revenue sources are scarce. This indicates a willingness to adjust financial priorities to address economic inequality.

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As inflation is high and income polarization is severe, we must research income support measures.