As price levels last month soared 6 percent, President Yoon Suk-yeol vowed to focus on safeguarding people's livelihoods.
The South Korean leader also pledged to streamline government committees that are inefficient.
Yoon Jung-min shares with us his remarks.
"From now on, I will personally take care of people's livelihoods. I will go out to meet the people myself, listen to their difficulties, and preside over a weekly emergency meeting.
President Yoon Suk-yeol pledged to take matters into his own hands Tuesday as he acknowledged the dire economic situation and the financial difficulties facing the Korean people.
Our economy is facing great challenges today with consumer prices rising 6% last month from a year earlier due to the worst inflation since the oil crisis in the 1970s.
To tighten the belt, Yoon, now less than two months in office, pointed to the inefficiencies of the government committees vowing the top office will take the lead in overhauling the ones under its wing and cutting back their budget.
He instructed each ministry to take similar steps.
An official at the presidential office said 30 to 50 percent of committees under different ministries will be abolished under the president's orders while those under the president will be reduced by 60 to 70 percent.
There are currently 20 committees under the president and more than 600 under the prime minister and different ministries.
Reflecting the administration s determination to tighten the belt first in the public sector, President Yoon also vowed to aggressively cut expenditure and sell non-essential assets at public enterprises.
Yoon Jung-min, Arirang News.