South Korea to Suspend Milling-Wheat Import Tariff, Finance Ministry Says

South Korea will temporarily remove an import tariff on milling-wheat shipments from Jan. 1 to help “stabilize” local prices, the nation’s finance ministry said.

A tariff on flour will also be cut to 2.5 percent from 4.2 percent and the moves will be effective until the end of June, the ministry said in an e-mailed statement today.

Wheat has gained 42 percent this year after drought damaged crops in Russia, prompting the country to ban exports, and rains cut output in Australia and Canada. The disruptions increased demand for supplies from the U.S., the world’s largest exporter.

South Korea will maintain cuts in import tariffs next year on corn, soybeans, liquefied natural gas and oil products including heavy oil and gasoline, according to the statement.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net

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