President Lee Jae-myung said on the 23rd that despite stabilizing international oil prices, the burden of prices on ordinary people remains heavy, and that the "oil price ceiling" should be maintained. He said expected excess tax revenues from the boom in artificial intelligence (AI) and the semiconductor industry could be used to boost consumption capacity, including by easing the burden of fuel taxes. He also said it is necessary to consider additional price stabilization measures to respond to high inflation.
At a joint Cabinet meeting and emergency economic review meeting that day, Lee mentioned trends in international oil prices and the situation with petroleum product prices, saying, "International oil prices have fallen to the high-$70 level, but there is still a price burden." He added, "The oil price ceiling is something we need to keep in place because the price burden is high now," and "Prices of petroleum products have risen too much."
He also said it is necessary to consider price stabilization policies given fiscal capacity. Lee said, "Excess tax revenues are expected in areas like semiconductors," adding, "Even if we lower the fuel tax a bit, the fiscal burden is not that big, and it helps expand consumption capacity for ordinary people, so we should keep the oil price ceiling more boldly and also lower the ceiling somewhat."
In response, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said, "We will lower the ceiling and, if necessary, consider other policy alternatives as well."
Lee also noted that the semiconductor boom and the rise in the stock market are deepening asset polarization. Lee said, "With a high inflation rate and only blue-chip stocks rising in the stock market, assets are becoming polarized," and called for measures to support vulnerable groups. He also said, "Behind the dazzling achievement of the stock market's rapid growth looms the dark shadow of polarization," adding, "The government must painfully acknowledge young people's sense of alienation, and careful efforts are crucial across all policies to give youth more opportunities."