[Report] "What’s the point on Boknal?" Not Samgyetang but 'Geumgyetang'... Small Business Owners Sigh

Rising Prices of Chicken and More Burden Self-Employed
"Even Celebrating Boknal Feels Like a Luxury" Dining Customers Plummet

Last month, the average price of Samgyetang in Seoul was 14,885 won, marking a 4.0% increase compared to January. Photo by Kim Jeongwan kjw106@

[Asia Economy Reporter Kim Jung-wan] "What can we do on Boknal (the hottest days of summer)? The burden of ingredient costs keeps increasing.", "Even during peak seasons, we can't expect as much as before."

At around 11:30 a.m. on the 13th, Hong (60), who runs a Samgyetang restaurant in Eunpyeong-gu, Seoul, said he does not have high expectations even with the upcoming Chobok (the first of the three hottest days). Hong said, "Not only the price of chicken but also the prices of all the sub-ingredients needed for Samgyetang have risen, so my worries are growing," adding, "With prices rising so much, I think there will be very few people dining out even on Chobok."

Among self-employed business owners who mainly sell health foods like Samgyetang and chicken, sighs are heard rather than expectations ahead of the 'Boknal peak season.' This is because consumers are cutting back on dining out due to steep price increases. Also, the price of live chickens, a key ingredient in Samgyetang, has risen, leading to complaints that even profitable business is difficult. The wholesale price of a young chicken weighing about 500g was 1,800 won last year, but this year it has jumped nearly 1,000 won to 2,500 won.

Dining-out prices continue to rise. According to the Korea Consumer Agency's comprehensive price information portal 'Chamgagyeok' on the 14th, the average prices of representative dining-out foods such as Jjajangmyeon and Kalguksu in Seoul last month rose by more than 8% compared to the beginning of the year. The average price of Jjajangmyeon in Seoul in June was 6,262 won, up 8.5% from January, and Kalguksu rose 6.4% to 8,269 won.

In addition, prices of the eight major dining-out items rose significantly: Gimbap (2,946 won) 6.4%, Naengmyeon (10,269 won) 4.7%, Samgyeopsal (17,783 won) 4.7%, Kimchi Jjigae set meal (7,385 won) 4.4%, Samgyetang (14,885 won) 4.0%, Bibimbap (9,538 won) 3.8%, among others.

A Samgyetang restaurant in Eunpyeong-gu, Seoul has Chobok and Jungbok marked on its calendar. Photo by Kim Jeongwan kjw106@

Given this situation, many citizens are reducing or even avoiding dining out altogether. This is why Samgyetang restaurants cannot expect so-called health-conscious customers. Office worker Kim (30) said, "After calculating, I realized that my spending on food has increased," adding, "Looking at restaurant prices recently, lunch costs when eating out cannot be ignored." He added, "Even if not every day, I try to reduce food expenses by having lunch boxes once or twice a week."

There are also opinions that health foods like Samgyetang, which cost nearly 15,000 won per bowl, are a luxury on Boknal. Choi (28), a second-year office worker, said, "Nothing hasn't gone up these days, so it's hard to manage living expenses, and even on Boknal, I can't afford to prepare special meals," adding, "As a newcomer, my salary is low, and nowadays, taking care of special days feels more and more like a luxury."

The rise in Samgyetang prices is because the expensive chicken prices show no signs of falling. According to the Livestock Products Quality Evaluation Institute's Livestock Distribution Information, the price of broiler chickens has steadily increased from an average of 5,584 won per kilogram (on the 6th) to 5,609 won (on the 8th) and 5,638 won (on the 10th). In addition, various sub-ingredients needed for Samgyetang, such as garlic, ginseng, and jujube, have also become more expensive, accelerating price hikes.

Although the prices of chicken and other ingredients have all increased, some self-employed business owners express concerns about raising prices hastily. Photo by Kim Jeongwan kjw106@

Among self-employed business owners, there are sighs that they cannot raise prices recklessly. Park (67), who has operated a Samgyetang restaurant in Seodaemun-gu for over 10 years, said, "If I raise prices carelessly, even regular customers will leave," adding, "All the necessary ingredients have gone up, so I have to raise prices, but I'm stuck worrying about losing customers." He continued, "I've tried to persuade wholesalers, but it seems unlikely, so I will have to raise prices soon."

Meanwhile, the rise in flour and cooking oil prices is deepening worries in the chicken industry. According to the 'June Consumer Price Trends' announced by Statistics Korea, the price increase rate of cooking oil rose from 22.7% in May last year to 40.3% last month. During the same period, flour jumped from 26.0% to 36.8%.

Han (in his 60s), who has sold chicken at low prices specializing in takeout, said, "I used to make it the old-fashioned way and served small-sized chickens for 7,000 won per whole chicken, but now it's difficult." He lamented, "If the price of old-style whole chicken, which is popular for its cheap taste, goes up, how can it remain competitive? I have no place to stand, so I'm seriously thinking about putting the store up for sale."

Meanwhile, the government has expanded the zero percent tariff quota, which was applied only to cooking oil and pork, to include chicken, beef, and powdered milk, and urged the dining-out industry to cooperate in stabilizing prices. On the 13th, the Ministry of Agriculture, Food and Rural Affairs held a meeting with the Korean and snack-related dining-out industry to discuss additional support measures for stabilizing food prices.

Yang Ju-pil, Director of Food Industry Policy, said, "The government is making efforts to ease the management burden of the dining-out industry by significantly expanding support limits for fostering funds and operating tariff quotas on ingredients, so we ask the industry to cooperate in stabilizing food prices for the public."