Vice Minister of Economy Launches Investigation into Shrinkflation of Key Daily Necessities

The government has launched an investigation into the so-called 'shrinkflation,' where product volumes are reduced while maintaining prices.

On the morning of the 17th, Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, presided over the 'Emergency Economic Vice Ministers' Meeting and Price-Related Vice Ministers' Meeting' at the Korea Eximbank in Seoul to discuss measures for price stabilization.

Vice Minister Kim stated, "There are many concerns recently about covert price increases through volume reduction, the so-called shrinkflation. This is not an honest sales practice and can undermine consumer trust, so the government recognizes this as a serious issue."

Kim Byung-hwan, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the '33rd Emergency Economic Vice Ministers' Meeting and 2nd Price-Related Vice Ministers' Meeting, and the 7th New Growth Strategy TF Meeting' held at the Export-Import Bank of Korea in Yeongdeungpo-gu, Seoul on the morning of the 17th.

He added, "First, by the end of November, the Korea Consumer Agency will lead a survey on the actual conditions of major daily necessities, and a reporting center will be established to receive reports on related cases." Based on the investigation, the government plans to promptly prepare specific measures to enhance consumers' right to know.

Additionally, the government has launched a full-scale pan-government special price stabilization system starting this month. Although price levels remain high and uncertainties such as the Middle East situation and abnormal weather persist, efforts to stabilize prices will be strengthened to expand recent signs of price improvement.

Regarding detailed price measures by item, Vice Minister Kim said, "For items such as dyes, raw silk, food-grade potatoes, and modified starch, we plan to continue applying reduced tariffs next year based on industry requests." He also noted, "In the case of eggs, the announced farm gate prices are somewhat rigid. We will encourage the farm gate prices to quickly reflect supply and demand conditions and prepare institutional improvement measures utilizing auction markets and online wholesale markets by December."