[Report] "Songhae Gukbap Prices Also Rising" Steep Inflation... Increasing Number of Hungry Elderly

May Consumer Price Inflation Enters 5% Range... Dining Out Prices Up 7.4%
Government: "Price Increases Due to External Factors... Expect Inflation Rate in 6% Range Soon"
Elderly Visiting 'Free Meal Centers' Amid High Prices... "More Visitors Since Prices Soared"
4 to 5 out of 10 Korean Elderly in Poverty... OECD Rank 1st

People are waiting to enter the elderly free meal service at Wongaksa in Tapgol Park, Jongno-gu, Seoul on the morning of the 27th.
Photo by Seulgi Yoon seul97@

[Asia Economy Reporter Yoon Seul-gi] "I can't even go out and buy a cup of coffee, so what's the point when COVID is over?"

On the morning of the 27th near Tapgol Park in Jongno-gu, Seoul, Mr. Hong Jeong-pyo (81) lamented the soaring prices. Mr. Hong said, "I live on a pension of about 880,000 won per month after retirement," adding, "This amount is far from enough for today's prices. It was so hard to make ends meet that I even fell behind on electricity and gas bills by about 1 million won."

He continued, "Prices are rising, and elderly people who have no way to earn money are having a harder time," expressing, "I can't even think about eating out; I buy groceries little by little and prepare meals at home."

Another elderly person's concerns were similar. Mr. Kim (90), living with his children in Wangsimni, Seoul, said, "It was better to stay home during COVID," adding, "Even though COVID is over, prices are so high that I can't go out and freely buy a cup of coffee." Mr. Kim said, "Elderly people need money too, but no one gives us work because we're old, and living off our children's money is difficult," adding, "The government doesn't provide support if you live with your children. I have no cash on hand."

According to Statistics Korea, the consumer price index in May rose 5.4% compared to a year ago and 0.7% compared to last month. A rise above 5% is the first since September 2008. In particular, dining-out prices increased by 7.4%, marking the largest increase since March 1998 (7.6%).

On the morning of the 27th, people are waiting in the waiting room to receive meals at the free senior meal service at Wongaksa Temple in Tapgol Park, Jongno-gu, Seoul.
Photo by Yoon Seulgi seul97@

The government has declared price stabilization its top priority and said it will use all possible means, but controlling prices is expected to be difficult for the time being. This is because the main cause of price increases is external shocks such as the Russia-Ukraine war.

On the 26th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho appeared on 'KBS Sunday Diagnosis Live' and predicted, "We may see a price increase rate in the 6% range in June or July-August." He added, "Most of the causes of price increases are overseas, so if international oil prices drop sharply in a short period, it would ease the situation, but such a situation is not expected for the time being," and "Overall, high prices will continue for a considerable period."

As the unprecedented price surge continues, even gukbap (soup with rice) restaurants that had maintained low prices have started raising them. A restaurant famous as the '2,000 won Songhae Gukbap Restaurant' in Nakwon-dong, Jongno-gu, Seoul, raised its gukbap price by 500 won starting from the 1st, after maintaining it for over 10 years. A restaurant employee explained the price increase by saying, "Prices have risen too much."

As a result, elderly people with light wallets sometimes move from one free meal center to another. Ko Young-bae, secretary-general of the elderly free meal center at Wongaksa Temple next to Tapgol Park, said, "Since prices have risen, more people have been coming here," adding, "Mostly elderly people visit, but recently there are also people who appear to be in their 40s to 50s."

At around 11:30 a.m., when meal distribution began, a heavy shower briefly fell, but the elderly lined up to receive free meals regardless. The waiting room was crowded with about 200 people.

A gukbap restaurant in Nakwon-dong, Jongno-gu, Seoul, famous for its "2,000 won gukbap," has raised the price of gukbap by 500 won due to rising prices.
Photo by Yoon Seulgi seul97@

Ko said, "Among those who come here, there is a 90-year-old elderly person who always comes early in the morning to get a number ticket," adding, "That person eats four bowls when others eat one, and sometimes up to six bowls. He said, 'I can only eat one meal a day, so I have to eat a lot here.'"

The economic difficulties of the elderly are also reflected in statistics. According to the recently released OECD report 'Pensions at a Glance' and the issue brief by the National Pension Research Institute covering this report, South Korea's relative income poverty rate among the elderly is 43.4%, ranking first among OECD member countries. This is more than three times the average, meaning 4 to 5 out of 10 elderly Koreans are vulnerable.

In particular, the middle-aged and older elderly and elderly women showed high poverty rates. The rate was 34.6% for those aged 66-75, 55.1% for those over 75, 48.3% for women, and 37.1% for men.

Regarding this, Lim Chun-sik, president of the National Federation of Senior Welfare Organizations, explained, "When looking at elderly people facing economic difficulties, many did not save for their old age when they were young, or even if they saved, they gave the money to their children and ended up with no money," adding, "Elderly people expected their children to take care of them in old age and gave them money, but since the children cannot take care of their parents, the elderly fall into poverty."

Lim emphasized, "In the end, elderly people have no choice but to rely on social safety nets," and "We need to strengthen senior job programs such as public work projects so that the elderly can earn money while feeling a sense of social belonging and continue a healthy old age."