Soy Sauce, Gochujang, Kimchi, and Jeotgal Products Exempt from VAT Reduced by 10%
Imported Pork Discounted up to 40%
Summer Grocery Burden Eased Amid High Inflation
"Diversifying Discounted Products to Attract Customers"
An Emart employee is displaying products eligible for the value-added tax exemption policy, which will have their prices reduced by 10% starting from the 1st.
[Asia Economy Reporter Yuri Kim] Large discount stores have launched massive price cuts on key items to ease the burden of grocery prices. As the Russia-Ukraine war that began earlier this year and abnormal weather conditions continuing since spring have affected prices up to July, when the full summer season starts, large discount stores are introducing additional discount events in line with government policies for price stabilization to attract customers.
According to the distribution industry on the 1st, major large discount stores such as E-Mart, Lotte Mart, Homeplus, and Nonghyup Hanaro Mart are competitively offering discounts on products subject to the government's temporary VAT exemption policy, including up to 40% off imported pork with a 0% tariff rate.
Starting today, E-Mart is reducing prices by 10% on about 500 products eligible for VAT exemption. These include simply processed food products such as soy sauce, soybean paste, red pepper paste, kimchi, pickled radish, and salted seafood, which are packaged in vinyl, plastic, or bottles. E-Mart stated, "In active participation with the government's price stabilization policy, from yesterday until the 13th of this month, we are offering up to 50% discounts on representative products such as sauces."
Lotte Mart has also started a 10% discount on over 350 items. Homeplus is offering discounts of 10% or more on 323 items, including CJ Haechandle Traditional Soybean Paste (500g), Chungjungone Sunchang Sticky Red Pepper Paste (1kg), and Sempio Brewed Soy Sauce 501 (1.7L). Nonghyup Distribution is selling VAT-exempt products at Hanaro Mart Yangjae and Changdong stores at prices about 10% lower than the original price until December 31 next year.
There is also an ongoing discount event of up to 40% on imported pork. As pork prices soared due to rising feed costs caused by the surge in international grain prices, the government introduced a 0% tariff rate, and large discount stores began discount events reflecting this from the day before. E-Mart said, "Canadian pork, which previously had an 8.6% tariff, has been subject to a 0% tariff rate on shipments cleared from June 23. We have prepared 50 tons of Canadian chilled pork belly and neck meat until the 2nd, selling them at about 30% discounted prices limited to 1kg per person when using Shinsegae points."
Lotte Mart is also offering Canadian chilled pork belly and neck meat at a 20% discount compared to the regular price until the 6th. After the event ends, they plan to sell at prices 10% lower than the regular price. Lotte Mart explained, "We expanded the monthly import volume of Canadian pork from about 30 tons last year to about 80 tons monthly." Homeplus is also selling Canadian imported pork at up to 40% lower prices through a pre-planned event until the 6th.
According to the Ministry of Trade, Industry and Energy, large discount store sales in May decreased by 3% compared to the same month last year, reversing the slight increase (2%) seen in April. A large discount store official said, "The poor performance in May was due to the base effect of COVID-19, which caused relatively weak sales in electronics and home interior products. Starting this month, we will focus on increasing consumers visiting large discount stores by offering various discount events in line with government policies for price stabilization."
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