Not the 'Month of Family' but the 'Month of Fear'... Sighs Over Soaring Prices One After Another

A child is holding a toy chosen at the toy library set up in the Ogin Childcare Harmony Center in Jongno-gu, Seoul. [Image source=Yonhap News]

[Asia Economy Reporter Hwang Sumi] As May, the month of family, approaches, the economic burden caused by rising prices of goods and services is increasing.

First, theme park admission fees and movie ticket prices have increased. Lotte World in Songpa-gu, Seoul, raised the adult free pass price by 3,000 KRW from the 1st of last month, now charging 62,000 KRW. Everland also increased its annual membership fee by up to 40,000 KRW in March.

CGV raised movie ticket prices from the 4th of last month, citing decreased sales due to COVID-19. Regular 2D movie tickets increased by 1,000 KRW, costing 14,000 KRW on weekdays and 15,000 KRW on weekends. Special theaters like IMAX and premium theaters such as Gold Class saw increases of 2,000 KRW and 5,000 KRW respectively.

Previously, multiplex theaters including CGV raised ticket prices by 1,000 KRW in October-November 2020 due to the COVID-19 situation, and again by 1,000 KRW between April and June last year. This means ticket prices have risen by about 2,000 to 3,000 KRW over two years.

The dining industry is also raising prices due to increased food ingredient costs. Looking at major buffets, the buffet Constance at Shilla Palace Seoul Gangnam, part of the Shinsegae Group, plans to raise prices by up to 22% starting from the 1st. The Walkerhill Hotel buffet, under SK Group, raised weekend lunch and dinner prices from 131,000 KRW to 143,000 KRW per person starting last month.

The price of chicken, a popular national snack, is also increasing. Chicken franchise Genesis BBQ announced it will raise chicken item prices by 2,000 KRW starting this month. Genesis BBQ explained, "The burden on franchise stores has increased recently due to delivery app fees, and raw materials such as international grains and paper, as well as domestic and international logistics and labor costs, have surged."

As a result, BBQ’s signature menu, Golden Olive Chicken, will increase from 18,000 KRW to 20,000 KRW, and Golden Olive Chicken Drumsticks from 19,000 KRW to 21,000 KRW. Earlier, Kyochon Chicken raised prices by 500 to 2,000 KRW per item in November last year, and bhc also increased prices by 1,000 to 2,000 KRW in December of the same year.

A view of a CGV cinema in Seoul [Image source=Yonhap News]

Ahead of Children’s Day on the 5th, toy prices have also risen. According to E-Mart, among block toys, the representative high-priced product LEGO had five items priced over 100,000 KRW in the top 10 sales rankings as of last month, with the highest price at 149,900 KRW. In 2020, among the top 10, only two items were priced over 100,000 KRW, with the highest at 129,900 KRW.

This trend was even more pronounced in online stores with high discount rates such as card benefits. According to SSG.com’s popular toy product data, the price of LEGO, ranked number one in sales, was 74,900 KRW in 2020 but rose to 104,900 KRW this year. The price range of the top five popular products also increased from 74,900?129,500 KRW to 74,900?144,900 KRW during the same period.

This is analyzed as a result reflecting not only the rise in raw material prices and transportation costs but also the consumption tendency of young parents who want to buy better things for their children amid a low birthrate atmosphere.

Meanwhile, according to the Consumer Sentiment Survey released by the Bank of Korea at the end of last month, the expected inflation rate, which indicates future price increases, was recorded at 3.1%. This is the highest figure in nine years since April 2013.