S Korea to subsidise kimchi-making fest by releasing vegetable, salt stocks

Under the plan, South Korea will release 5,000 tonnes of garlic, 1.4 tonnes of peppers and 3.6 tonnes of onions from next week, according to the finance and agricultural ministries. It plans to supply 500 tonnes of salt reserves to traditional markets as well.

"For a considerable period, prices are expected to stay higher than in the past, amid the internal and external risk factors," Finance Minister Choo Kyung-ho said at a meeting in Seoul.

Local prices of agricultural goods have risen 8.7 per cent year-on-year in September, narrowing their growth from the 10.4 per cent hike tallied in August.

Kimchi is a popular Korean fermented side dish, eaten with almost every meal. While a growing number of people purchase ready-made products nowadays, many households still make their own kimchi, making the price of ingredients one of the key gauges of inflation.

Around 65 per cent of consumers plan to make their own kimchi this year, according to a survey by the Korea Rural Economic Institute.

The ministries said that while the output of key ingredients, such as napa cabbage and white radish, is expected to remain stable, the country needs to brace for a sudden change in the harvest following changes in the climate.

South Korea also plans to offer coupons worth 17.1 billion won ($12 million) to offer discounts of up to 20 per cent, the ministries added.

The country has been grappling with inflation, with its consumer prices soaring 5.6 per cent year-on-year in September. The Bank of Korea forecasts inflation could stay in the 5-6 per cent range for a considerable period.

Choo said South Korea's inflationary pressure may be eased following lower energy prices observed in October.

The Korea Herald

Asia News Network