Oh Se-hoon, the Seoul mayor, on the 23rd said regarding the response to the Middle East situation that "uncertainty in the global economy has begun to press daily life."
Presiding over the "emergency economic countermeasures meeting on the Middle East situation" this morning, Mayor Oh said, "We will immediately activate the price management system, strengthen the management safety net, and institutionalize public-private joint emergency countermeasure meetings."
At the meeting, in addition to Seoul Mayor Oh Se-hoon, key officials and related institutions such as the Seoul Business Agency, the Seoul Institute, and the Seoul Credit Guarantee Foundation, as well as economic organizations including the Korea Trade Insurance Corporation (K-sure), the Korea Federation of Small and Medium Enterprises, the Korea Trade Insurance Corporation (K-sure), the Korea International Trade Association, the Korea Trade-Investment Promotion Agency (KOTRA), the Korea Shipowners' Association (KSA), the Korea International Freight Forwarders Association, the Korea Integrated Logistics Association, and the Korea Specialty contractors association attended.
The meeting discussed ways to operate a comprehensive response system that expands from the corporations- and prices-centered response the city has pursued so far to include transportation, taxation, and daily-life-focused areas. Earlier, immediately after the Middle East situation arose on Mar. 6, the city activated an "emergency economic task force," and on the 11th of the same month, it escalated its response level through an emergency economic meeting chaired by the first vice mayor for administrative affairs, continuing its response.
First, the city will promote support measures that supplement risk response functions in addition to existing financial support for import-export corporations harmed by the Middle East situation. Centering on the Seoul Business Support Center, it will work with the Trade Insurance Corporation, the Korea Federation of Small and Medium Enterprises, and the Credit Guarantee Foundation to receive corporate damage and difficulties at all times and link financial, insurance, and logistics support according to counseling results.
In particular, to ease the burden on corporations from soaring logistics costs and disruptions in maritime transport, the city will promote emergency logistics cost vouchers (export vouchers).
This package also expands support to close insurance blind spots and prevent chain bankruptcies. The city is consulting with related agencies to support batch enrollment in export insurance (group insurance) for small-volume export corporations, and plans to close insurance blind spots and simplify administrative procedures.
The city also proposed to the central government institutional improvements regarding structural issues such as surging shipping rates and the passing on of logistics cost burdens.
In addition, it will strengthen inspections focusing on businesses showing signs of a sharp rise in oil prices and implement measures such as tighter heating and cooling management to save energy in the public sector.
To stabilize prices, the city will monitor the prices of 87 items of agricultural, livestock, and fishery products and processed foods at 97 traditional markets and 25 big-box retailers. For 10 daily necessities, including ramen, instant rice, and canned goods, it plans to check for abnormal signs such as hoarding.
To reduce residents' transportation costs, the city will extend the concentrated dispatch hours for commuter subways and buses by one hour each. The morning commute period of 7–9 a.m. will run 7–10 a.m., and the evening commute period of 6–8 p.m. on normal days will be extended to 6–9 p.m. The city will implement a five-day rotation driving system at 1,546 public and public-affiliated parking lots and raise transfer parking fees to encourage the use of public transportation.
Mayor Oh said, "We recognize the current situation as grave and will immediately activate an all-out price management system for stabilizing people's livelihoods," adding, "Through strengthening the management safety net for corporations and small merchants, we will pursue preemptive measures and mobilize all available means with an extraordinary determination to protect residents' daily lives."