South Korea to Expand LPG Butane Tax Cuts and Strengthen Anti-Collusion Measures

The Ministry of Finance and Economy stated that this decision responds to expected domestic impacts from international LPG price increases caused by the Middle Eastern crisis, beginning in May. The ministry noted that the change would reduce financial burdens for butane users, primarily from low-income groups.

International butane prices rose nearly 50 percent to an average of US$800 per ton in April from $540 per ton in March, according to the ministry.

last month, the government increased tax cuts on gasoline from 7 percent to 15 percent and on diesel from 10 percent to 25 percent, effective through the end of May. An intergovernmental inspection team identified 99 cases of petroleum business law violations during checks on more than 5,700 gas stations nationwide, including false reporting and hoarding.

The ministry reported that consumer price inflation was 2.2 percent in March and is expected to reach the mid-2 percent range or higher in April due to fuel price increases.

The ministry added that it will continue efforts to stabilize supplies of key industrial materials such as naphtha and urea to minimize the effects of the Middle East crisis on domestic industries. The Fair Trade Commission (FTC) announced plans to pursue stronger punitive measures against companies involved in repeated collusion, including revocation of registration and licenses, as well as business suspension.

The FTC is reviewing amendments to related laws for industries requiring business registration or approval, such as construction and real estate, according to officials. The regulator is also considering a system to order the dismissal or suspension of executives involved in collusion and reforms to the litigation system to facilitate compensation for victims.