Government to Introduce Regulations on Shrinkflation
The South Korean government is planning to present regulations on shrinkflation next month. Shrinkflation refers to the practice of reducing the quantity of a product while maintaining its price.
Deputy Prime Minister and Minister of Strategy and Finance, Chu Kyung-ho, appeared on a broadcast on the 28th and stated, “The government is considering regulations on shrinkflation through discussions with the industry and consumer organizations. We plan to present the regulations in December.” He further emphasized that shrinkflation, which reduces the quantity while maintaining the price, is a deceptive sales practice and does not gain trust from consumers. The Fair Trade Commission is currently conducting an investigation to determine the appropriate form of regulation.
Regarding inflation in November, Chu added, “Based on the current outlook, we expect it to be lower than October (3.8%).”
In response to the proposed special tax targeting banks, Chu expressed his negative stance, stating, “Imposing a special tax on specific profits of certain companies is not desirable.” However, he also acknowledged the public’s dissatisfaction with banks celebrating excessive interest profits while the livelihoods and economy are difficult. He emphasized the need for voluntary measures to alleviate the financial burden on consumers in the spirit of mutual growth.
Looking ahead to next year’s economic situation, Chu predicted that the recovery trend will become more pronounced. He noted that there may be a time lag before the economic recovery translates into improvements in people’s daily lives and emphasized the need to strengthen economic policies with a focus on improving the livelihoods of the people.
