Food and Dining Industry "Cooperating to Stabilize Chuseok Prices, Will Delay Price Increases" (Comprehensive)

Meeting at Korea Food Industry Association on the 8th
12 Food Companies and 10 Dining Companies Attended
Industry Expresses Willingness to Cooperate with Government

The food and dining industry has agreed to actively participate in government policies aimed at stabilizing prices for Chuseok. However, as the burden of profitability deterioration due to rising raw material costs increases, they have requested an expansion of tariff quota items and export support.

On the 8th, Han Hoon, Vice Minister of the Ministry of Agriculture, Food and Rural Affairs, held a price stabilization meeting with 22 food and dining companies at the Korea Food Industry Association in Seocho-gu, Seoul, stating, "The consumer price inflation rate, which had recently entered a stabilization phase, surged sharply last month, causing great concern among the public ahead of Chuseok," and added, "The government will actively assist where possible, so we hope industry stakeholders will also participate."

Han Hoon, Vice Minister of the Ministry of Agriculture, Food and Rural Affairs, is giving a speech at the food industry meeting held on the 8th at the Korea Food Industry Association in Seocho-gu, Seoul.
[Photo by Ministry of Agriculture, Food and Rural Affairs]

According to the consumer price index for August released by Statistics Korea on the 5th, the consumer price inflation rate, which had been stabilizing with a 2.3% increase last month, sharply rose to 3.4% in August. The prices of agricultural and livestock products, which had moved slightly from May to July this year, also unexpectedly increased by 2.7% in August. The inflation rates for processed foods and dining out also remain high at 6.3% and 5.3%, respectively, among overall prices.

In response, food and dining companies expressed their willingness to participate. Vice Minister Han told reporters immediately after the meeting, "Many companies understand the government's concerns and have agreed to participate as much as possible," adding, "Although there were no specific commitments, many companies responded that they have no plans to raise prices this year or will delay increases as much as possible."

Han Hoon, Vice Minister of the Ministry of Agriculture, Food and Rural Affairs, is giving a speech at the food industry meeting held on the 8th at the Korea Food Industry Association in Seocho-gu, Seoul.
[Photo by Ministry of Agriculture, Food and Rural Affairs]

However, food and dining companies reportedly voiced concerns about cost burdens due to rising international prices of sugar, wheat, and other commodities, as well as significant increases in agricultural, livestock, and fishery product prices caused by heavy rains and heatwaves. In particular, the three major chicken franchises?Kyochon, BBQ, and bhc?emphasized the need for price stabilization of chicken. Additionally, since there is a high dependence on overseas imports of raw materials, they requested an expansion of tariff quota items and diversification of import sources, noting that even items subject to tariff quotas sometimes face difficulties depending on the supply and demand situation in the respective countries.

Regarding this, Vice Minister Han said, "We will expedite the import of quantities subject to tariff quotas from overseas in the second half of this year," adding, "We plan to import and distribute 5 million hatching eggs, and if this is resolved, we expect chicken prices to ease."