Record-High 'Charye Table Prices'... Government Discounts and Supply 'All-Out Offensive'

With the Lunar New Year approaching, prices of major seasonal products such as apples and pears have surged due to supply instability, causing the cost of the ceremonial table to reach an all-time high. The government has responded by conducting large-scale supply and discount events, as well as daily price surveys of key items to stabilize prices of seasonal goods.

According to a survey conducted on the 28th by Korea Price Information, a specialized price investigation agency, on the cost of ceremonial tables at traditional markets and large supermarkets, the cost for a family of four this year reached a record high of approximately 281,000 KRW at traditional markets and about 380,000 KRW at large supermarkets. This is attributed to sustained high inflation over recent years, supply instability caused by abnormal weather, and the outbreak of highly pathogenic avian influenza (AI), which have driven up prices of major seasonal products.

[Image source=Yonhap News]

In response, the government took immediate action. Kim Byung-hwan, First Vice Minister of the Ministry of Economy and Finance, chaired a price vice-ministerial meeting and decided to concentrate on supplying 44,000 tons?over 60% of the government’s supply volume?from January 26 to February 1, the second week of the peak season. This amounts to about 7,400 tons per day, equivalent to 740 ten-ton trucks of apples and pears, demonstrating the government’s commitment to lowering prices. Additionally, starting from this day, Nonghyup will sell 100,000 fruit gift sets at 15-20% discounted prices compared to market prices.

To reduce fruit prices, import fruit tariff reductions and the use of low-tariff quota (TRQ) volumes have been promoted, with large-scale discount events for imported fruits being held in the distribution industry from the end of this month. Homeplus and E-Mart have already started sales, and Lotte Mart will begin sales from February 1. The TRQ volumes began customs clearance earlier than scheduled by 2-3 weeks on the 19th and about 6,200 tons have been imported so far.

The Ministry of Agriculture, Food and Rural Affairs is leading a nationwide Hanwoo (Korean beef) discount sale event of up to 50% off ahead of the Lunar New Year. In cooperation with the National Hanwoo Association, Hanwoo Fund, and Nonghyup Economic Holdings, a 12-day Hanwoo discount sale will be held from the 29th of this month to the 9th of next month at 29 online and offline companies and 1,885 stores nationwide.

During the discount event, Hanwoo will be sold at prices up to 50% lower than usual. Grade 1 sirloin will be sold for 8,180 KRW or less per 100g, grade 1 brisket for 4,620 KRW or less, and grade 1 bulgogi and soup cuts for 3,020 KRW or less. The Ministry of Agriculture, Food and Rural Affairs explained that these prices are up to 30% cheaper compared to the same period last year. The 'Online Hanwoo Market' operated by the Hanwoo Fund will start the discount event on the 29th, and major online malls, large supermarkets, and supermarkets will begin as early as the 31st. Nonghyup Hanaro Mart, which has the largest number of participating stores (549) among single companies, will start on February 2.

The Statistics Korea will conduct a 'Daily Price Survey for the Lunar New Year' on 33 major items every day until February 8, the day before the Lunar New Year. Although Statistics Korea stated that this daily price survey aims to quickly provide data necessary for the government’s livelihood stabilization measures ahead of the Lunar New Year, it is expected that simply monitoring prices will also help suppress the prices of seasonal products. The 33 major items include 21 agricultural, livestock, and fishery products such as beef, croaker, and fruits; 5 processed foods such as flour and tofu; 3 petroleum products including kerosene, gasoline, and diesel; and 4 dining-out items such as pork belly and chicken.