U.S. Raises Alarm Over Chinese AI Firms’ Alleged IP Theft Through Model Distillation 
U.S.-Iran Conflict Stalls as Diplomatic Efforts Collapse and Global Oil Tensions Rise 
U.S. Sanctions Target Chinese Refinery Over Iranian Oil Purchases 
Asian Stock Markets Rally as Japan and South Korea Hit Record Highs Amid Oil Price Concerns 
Sun Pharma to Acquire Organon in $11.75 Billion Deal to Boost Global Women’s Health Portfolio 
Oil Price Forecasts Rise for 2026 as Middle East Supply Risks Persist 
U.S. Consumer Sentiment Hits Record Low as Iran Conflict Fuels Inflation Concerns 
China’s Ultra-Cheap EV Boom: Why Electric Cars Cost Far Less Than in the U.S. 
Chinese Chip Stocks Surge on AI Boom and Domestic Tech Push 
U.S. Budget Airlines Seek $2.5 Billion Government Aid Amid Rising Jet Fuel Costs 
Amazon Stock Rises as Meta Expands AWS Partnership for AI Infrastructure 
BOJ Holds Interest Rates at 0.75% as Policymakers Signal Growing Inflation Concerns 
Kia Cuts EV Prices in Europe as Chinese Carmakers Intensify Competition 
Asian Currencies Rise Ahead of BOJ and Fed Meetings as Dollar Softens 
ECB Rate Outlook: Ceasefire Eases Pressure but Hikes Still Expected in 2026 
South Korea announced that it would be lifting tariffs on food imports to improve the standard of living in the country. On Monday, May 30, the local government revealed a special package to help fulfill the aim of making the living conditions of households better.
The package has been designed to ease household burdens for living expenses as many are already suffering from the increasing consumer prices. With the Finance Ministry’s KRW3 trillion budget plan to sustain livelihoods, the government will be slashing households’ expenditure burden for housing and commodities.
According to The Korea Herald, the government will implement a number of countermeasures, and the costs for this move are likely to reach over KRW3 trillion or about $2.5 billion. The amount will come from state funds and will be used to combat the high inflation rate. This plan was confirmed by economy ministers during a meeting in Seoul led by Deputy Prime Minister and Finance Minister Choo Kyung Ho.
For the most part, the aim of the measure is to impose a zero tariff on food ingredients such as cooking oil, flour, processed eggs, pork, and wheat until the end of this year. As the government officials are set to remove the quota tariff on imported pork meat from the present 22.5 to 25% to zero percent, the country’s Ministry of Economy and Finance said this could also lead to the reduction of pork prices in the local markets by as much as 20%.
Moreover, they are also planning to suspend the quota tariff on flour and cooking oil which normally has three and five percent import taxes, respectively. The officials will implement the zero percent tariff on the said products in the coming days.
Tax cuts on processed eggs will be extended as it already has a temporary tax exemption. For coffee and cocoa beans, the value added tax will also be removed by 2023. The slash is expected to affect import prices and ultimately reduce them by nine percent. Overall, the officials believe these tax cuts will lower South Korea’s inflation rate by 0.1 percentage point per month.
Meanwhile, as posted on the International Trade Administration website, South Korea normally has a flat 10% value added tax (VAT) on all imports as well as locally produced goods. A special tariff of 10 to 20% is also imposed on the import of some luxury items and consumer merchandise.
