"Mask and Sanitizer Prices Fluctuate Wildly?" Soaring Costs of Essential Goods Amid New Coronavirus

Sales Prices of Laundry Detergents and Disinfectants Jump 10% Amid Turbulent Times... Surge in Prices
Mask and Cleaning Product Prices Soar Online, Calls for Government Intervention Grow
Dining Costs for Popular Affordable Foods Like Jajangmyeon and Gimbap Also Rise... Living Expenses Instability Increases Burden on Low-Income Households

Masks piled up at Traders. This image is unrelated to the article content.

[Asia Economy Reporter Lee Seon-ae] As the prices of daily necessities rise, the burden on low-income households is increasing. Recently, with the spread of the novel coronavirus (COVID-19), hygiene products such as masks and sanitizers have been selling like hotcakes, causing some online sales prices to soar. Taking advantage of the unstable situation, companies are competing to raise prices of essential household items like dishwashing detergents and laundry detergents. Moreover, prices of popular dining-out menus among ordinary people have also risen significantly, adding to the cost of living burden.

According to the price trends of daily necessities from the Korea Consumer Agency's Chamgagyeok on the 4th, the selling prices of most liquid laundry detergents have increased. The January selling price of 'Ddaegassok Beat' (CJ Lion, 3000㎖) was 12,732 KRW, up 2.3% from 12,441 KRW in the previous month. The selling price of 'Persil Power Gel Drum' (Henkel Home Care Korea, 2700㎖) rose 8.8% from 18,139 KRW to 19,735 KRW, and 'Persil Power Gel Regular' (Henkel Home Care Korea, 2700㎖) jumped 8.7% from 17,939 KRW to 19,498 KRW.

Fabric softener prices are also on the rise. The January selling price of 'Downy Concentrated Blue Tulip and Sweet Lilac' (Korea P&G, 2000㎖) was 9,113 KRW, up 3.3% from 8,823 KRW the previous month, and 'Safran Cotton & Cream' (LG Household & Health Care, 4200㎖) increased 2.1% from 8,804 KRW to 8,987 KRW.

Sanitizer prices have also increased. The selling price of 'Mugyunmuttae Bathroom Cleaner' (Pigeon, 500㎖) rose 4.4% from 5,020 KRW to 5,239 KRW.

Dishwashing detergent prices are also trending upward. The January selling price of 'CJ Chamgreen' (CJ Lion, 965㎖) was 6,329 KRW, up 5.4% from 6,005 KRW the previous month, and 'Safe Organic Sprouted Brown Rice Refill' (LG Household & Health Care, 500㎖) increased 1.2% from 3,937 KRW to 3,984 KRW.

Prices of disinfectants are soaring. The January selling price of 'Yuhan Clorox Regular' (Yuhan Corporation, 1.5ℓ) jumped 10.6% from 3,050 KRW to 3,373 KRW. Insecticide prices are also notable. The selling price of 'F-Killer Aerosol Unscented' (SC Johnson Korea, 500㎖) rose 3.9% from 4,966 KRW to 5,162 KRW, and 'Home Keeper Water-based Aerosol' (Henkel Home Care Korea, 500㎖) increased 2.1% from 4,615 KRW to 4,714 KRW.

Due to the spread of COVID-19, prices of masks and sanitizers are fluctuating wildly. The main culprit is online shopping malls. A seller on an online shopping mall who previously sold 60 KF94 masks at around 39,000 KRW was found selling them at 270,000 KRW and 180,000 KRW, drawing public criticism. Some unscrupulous sellers increase prices by notifying buyers of out-of-stock status to refuse sales, then raise product prices again, increasing the burden on consumers.

According to an analysis of 782 mask-related consultations received by the Consumer Counseling Center 1372 from January 28 to 31 by the Consumer Citizens' Organization, 77.2% of consumers who suffered damages such as order cancellations and price gouging purchased masks through e-commerce platforms like open markets and social commerce. The problem is that due to the nature of open markets where many sellers upload products in real-time, there is no effective seller monitoring system. The Consumer Citizens' Organization emphasized, "Strengthening seller management at the shopping mall level and imposing strong sanctions on such sellers are necessary, but furthermore, the government should establish appropriate measures for manufacturing, sales, and distribution, and strengthen management and supervision."

Meanwhile, dining-out prices are also concerning. According to Chamgagyeok, among eight representative dining-out items popular in the Seoul area, prices of seven menus rose simultaneously. The menu with the largest price increase was jajangmyeon (black bean noodles). As of December, the average price of jajangmyeon was 5,154 KRW, up 7.19% from 4,808 KRW in the same month last year. The price of jajangmyeon in Seoul surpassed 5,000 KRW starting October last year. The price of one roll of gimbap was 2,408 KRW, up 6.12% year-on-year. Kimchi stew set meal rose 3.7% to 6,462 KRW, and kalguksu (hand-cut noodle soup) increased 3.41% to 7,000 KRW. A bowl of naengmyeon (cold noodles) rose 1.74% to 8,962 KRW, and samgyetang (ginseng chicken soup) increased 1.62% to 14,462 KRW.

Consequently, consumer prices are also showing a concerning trend. According to the consumer price index released by Statistics Korea, the consumer price index for January was 105.79 (2015=100), up 1.5% year-on-year. This increase is the largest in 14 months since November 2018 (2.0%). The consumer price inflation rate exceeding 1% is the first time in 13 months since December 2018 (1.3%).