Seoul: The government announced a series of measures aimed at improving the country's tariff-rate quota system, focusing on preventing exploitation by importers. This announcement was made during a high-level task force meeting, chaired by Finance Minister Koo Yun-cheol, addressing the stabilization of consumer prices, especially those impacting citizens' daily lives.

According to Yonhap News Agency, the tariff-rate quota system enables the importation of certain goods at reduced tariff rates, with potential reductions of up to 40 percentage points on designated items, primarily food. However, authorities discovered that some importers have manipulated the system by importing goods at these reduced rates only to store them in warehouses or delay customs declarations, eventually selling the goods at elevated prices.

In response to these practices, the government plans to classify items with a higher risk of exploitation as "intensive management items," thereby enhancing monitoring efforts, as stated by the finance ministry. Additionally, importers will now be required to provide proof of distribution performance, ensuring that imported goods are swiftly distributed within the domestic market.

Customs authorities are set to intensify investigations into businesses that acquire tariff-rate quota recommendations through deceptive means. Over recent years, the government has broadened the scope of items eligible for tariff-rate quotas to approximately 100 annually, resulting in more than 1 trillion won (US$700.5 million) in tariff reductions each year.