Now it’s time for On Point, where we speak to experts to delve deeper into the biggest news stories in the spotlight right now.
From Friday, South Korea will slash fuel taxes by 20 percent on gasoline, diesel and LPG in a bid to ease the burden on consumers from surging prices at the pump as international oil prices continue to soar.
The lower taxes will remain in effect through April 30th, 2022.
The 20 percent cut is more than double the rate the last time the government was forced into making such a move a few years ago.
On top of that, inflation in general is rising fast, but salaries remain static and many households are struggling to make ends meet.
For more, we connect to Professor Oh Joon-seok from Sookmyung Women's University's School of Business.
Professor, how do you evaluate the South Korean government’s decision to slash fuel taxes by 20 percent and will it be enough to shelter Korea from the worst of the skyrocketing international oil prices?
The OPEC+ group is under enormous pressure from the United States, in particular, to increase oil production, but they are refusing to budge, saying they would rather keep their current pace. Is there anything the international community can do to make OPEC-plus change course?
Consumer prices in South Korea are growing at the fastest pace in almost a decade and it’s likely to get worse. On top of that, the supply chain crisis is causing chaos - not just in Korea, but around the world. What can policymakers at the finance ministry or the Bank of Korea do to get this under control?
Finally, a lot of people, including the chairman of the Fed, is unsure where this is heading, finally admitting that it’s uncertain when prices will get back to normal. In regards to inflation, what are the best and worst case scenarios over the coming months?
We appreciate your insights as always. Professor Oh Joon-seok from Sookmyung Women's University's School of Business. Thank you.