President Lee: "Price increases amid rapid South Korean economic recovery... measures being prepared"

Lee "It's not an overall high-price situation, but perceived prices are high"

"Closely monitoring the situation and preparing necessary measures"

President Lee Jae-myung said on the 3rd that the recent rise in prices is partly due to the rapid recovery of the South Korean economy and that related measures are being prepared.

The president answered a reporter's question about measures to manage upward pressure on prices right after the '1st anniversary of the Light Revolution, special address to the nation' that morning.

He explained, "We need to consider the relationship between prices and economic growth," and added, "Since the economy is showing a very rapid recovery, price inflationary pressures can arise. There are multiple factors at play, such as exchange rate variables and the stock market affecting things."

He went on, "Overall it is not a high-inflation situation, but as the economic situation changes rapidly, perceived prices can feel considerably high and can be a heavy burden on the public," emphasizing, "We are closely monitoring the situation and preparing necessary measures, and some are already being implemented."

According to the 'November Consumer Price Trends' released the previous day by the National Data Office, last month's consumer price index rose 2.4% year-on-year, marking three consecutive months of increases in the 2% range since September.

The president said, "The worst thing is prices rising amid an economic downturn," and added, "That trend appears to have continued under the previous administration through the first half of this year. Compared to that, current prices are fairly stable."

Regarding the past six months of state governance, he said, "While focusing on recovery, we have also done a lot of preparation for future growth. Going forward, we will increasingly shift to a future-focused and growth-oriented approach," and assessed, "I was concerned that economic recovery would be slow, but it seems to be turning around faster than expected."

Meanwhile, at a press conference with foreign media on plans to reform the inheritance tax, he said, "There is debate about effectiveness, but there is also a value debate about whether it is just," and stated, "It's not easy to say simply, but there are unreasonable aspects that need to be examined seriously."

Yu Ji-hee, Hankyung.com reporter keephee@hankyung.com