March 20, 2008

South Korea to lift grain import tariffs

South Korea has announced on Thursday its decision to lift import tariffs on 70 grains and raw materials, including corn and wheat, in a bid to fight inflation.

The lifting will take effect starting from April 1, 2008.

The decision was made at a meeting of economic ministers, who also decided to freeze utility charges.

South Korean president Lee Myung-bak and ministers are concerned over soaring commodity prices such as oil, and the government will finalise measures to combat inflation at next week's cabinet meeting.

President Lee has called for quick and effective measures to stabilise consumer prices, according to spokesman Lee Dong-kwan.

Inflation in South Korea has reached 3.6 percent in February, exceeding the central bank's estimated range of 3.5 percent for the third consecutive month.

South Korea has few natural resources and therefore has been severely affected by rising global commodity prices, and problems were made worst due to the depreciating South Korean currency, which made imports more expensive.