Government Explains 'Geumgyeran', Inspects Large Marts... Taking Measures to Control Lunar New Year Prices

AI and Egg Prices Are Unrelated "Only a Temporary Phenomenon"
Policy Field Inspection "Doing Our Best to Stabilize Prices During Peak Season"

The government is making every effort to control the prices of key agricultural products such as holiday essentials, tangerines, and green onions ahead of the Lunar New Year. While an official from the Ministry of Agriculture, Food and Rural Affairs (MAFRA) personally visited large supermarkets for inspections, the ministry quickly issued a clarification regarding reports that highly pathogenic avian influenza (AI) was the cause of the sharp rise in egg prices.

On the 11th, Park Su-jin, Director of the Food Policy Office at MAFRA, visited a large supermarket located in Eojin-dong, Sejong. The visit aimed to check the supply and demand status of holiday essentials such as apples, pears, and eggs, as well as agricultural and livestock products with high consumer prices like green onions, tangerines, and strawberries, and to listen to consumer opinions. It was also intended to verify whether government policies to reduce the public’s price burden, such as expanded discount support, were being effectively implemented on the ground.

He toured the interior of Homeplus Sejong branch, checking the price and supply trends of holiday essentials and agricultural and livestock products, and met with Homeplus officials and consumers to hear on-site public opinion. Director Park said, "Large retail chains, which are frequented by many consumers, play an important role in alleviating the perceived price burden of agricultural and livestock products by conducting their own discount events alongside government discount support." He added, "The government will do its utmost to stabilize prices during the Lunar New Year by expanding the supply of essential products and increasing discount support."

MAFRA has increased the government discount support budget by 52% from last year, investing 40 billion KRW, and since the 11th, it has been supporting a 30% discount on holiday essentials such as apples and pears at large supermarkets. According to MAFRA, if the distribution industry, including large supermarkets, cooperates, the discount benefits for consumers could be expanded up to 60%.

In addition, ahead of the Lunar New Year, MAFRA promptly responded to a media report claiming that egg prices rose 19% compared to the average year due to the spread of highly pathogenic AI. In an explanatory statement, MAFRA said, "The main reason for the egg price increase earlier this month was a temporary phenomenon caused by the end of egg discount events at the end of December last year and the distribution industry securing stock ahead of the holiday discount events starting on the 11th."

While the report predicted that the spread of AI could further increase egg prices, MAFRA drew a clear line, stating, "As of the 11th, the number of laying hens culled due to AI outbreaks is 2.67 million, which is about 3.5% of the total laying hen population (76.13 million). Therefore, it is difficult to consider AI as a direct cause of the egg price increase."

Furthermore, MAFRA emphasized, "To stabilize egg supply and prices during the holiday season, since the 11th, we have been meticulously implementing measures such as discount support for agricultural and livestock products, discount support on delivery prices through the NongHyup, extended production in collaboration with the Laying Hen Association to increase egg supply, support for tariff quotas on processed egg products, and expanding egg imports."

The government’s crackdown on food prices at this time, about a month before the Lunar New Year, appears to be aimed at early alleviation of public concerns about rising prices. On the 10th, Han Hoon, Vice Minister of MAFRA, held a meeting with fruit producers’ organizations and stated, "We will prepare measures to stabilize the supply of holiday essentials."