"Promised to Buy Meals, but It's Boknal"... 100,000 Won Not Enough for Samgyetang for 4 People [Chosun Price Records]

(26) Monday is Chobok
June chicken farm prices down 35.5%
Wholesale prices also lower than last year
But Samgyetang and chicken prices are rising

There are days when a team of four members has to spend over 100,000 won just to quickly finish a bowl of stew at a restaurant in front of the company during lunch break. That day is the 15th, the start of the summer Boknal (the hottest days of summer). Near City Hall Station, at Goryeo Samgyetang, the cheapest regular samgyetang costs 20,000 won per serving. Other menu items such as Sansam Samgyetang, Jeonbok Samgyetang, and Sansam Jeonbok Samgyetang are priced between 26,000 and 32,000 won. The price of samgyetang at Jiho Hanbang Samgyetang, the largest samgyetang franchise in Korea, ranges from 17,000 to 22,000 won.

The Boknal, a day for health restoration to overcome the summer heat, has become a burden for ordinary people due to the rising prices of samgyetang. Although the price of chicken, a representative Boknal food, has dropped compared to last year, the prices of samgyetang and chicken have been rising annually due to increases in labor costs, distribution costs, and other raw material prices. According to the Agricultural Outlook Monthly Report on Broiler Chickens published on the 14th by the Agricultural Outlook Center of the Korea Rural Economic Institute, the number of chickens slaughtered in July is expected to increase by about 4.4% from the previous year to between 69.56 million and 70.97 million. The number of chicks placed and the number of working days have increased, so the number of chickens slaughtered is also expected to rise. The number of chickens slaughtered next month, which includes Malbok (August 14), is expected to increase by 1.0% from the previous year to between 68.3 million and 69.68 million.

On the 10th, a day before Chobok, an employee is carrying Samgyetang at a Samgyetang restaurant in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The price of chicken has decreased compared to last year due to increased production. The wholesale price of live chickens in June was recorded at 1,460 won, down 35.5% from the same period last year. After slaughter, they were supplied to large supermarkets and franchises at 4,033 won and 3,262 won respectively. Compared to a year ago, the supply price to large supermarkets (5,150 won) dropped by 22%, and to franchises (3,791 won) by 14%.

However, due to increases in labor costs, distribution costs, and other raw material prices, dining-out expenses have risen sharply, causing samgyetang prices to soar. According to statistics from the Korea Consumer Agency's price information portal 'Chamgagyeok,' the average price of samgyetang in Seoul in June was 16,885 won, up 2.8% from the same month last year and 13% from 2022. The price of samgyetang at popular franchises has already exceeded 20,000 won.

The price increase trend is even steeper for chicken, a health food favored by young people on Boknal. According to a survey by the Consumer Public Interest Network last year, the average price increase rate of the three major chicken franchises?BHC, BBQ, and Kyochon Chicken?over the past three years was 12.6%. This year, BBQ raised prices again, increasing prices by 6.3% for 23 menu items including 'Hwanggeum Olive Chicken.'

[Image source=Yonhap News]

Consumers Complain "Chicken Prices Are Falling" ... Turning to Affordable Meal Kits and Convenience Stores

Last year, consumer prices rose by 3.6% compared to the previous year. However, the increase rate of dining-out prices was 6.0%, about 1.7 times higher than the consumer price inflation rate. This trend of dining-out prices rising faster than consumer prices has continued in the first and second quarters of this year. The consumer price inflation rate in the first quarter was 3.0%, but dining-out prices rose by 3.8%. In the second quarter, the increase in dining-out prices slowed to 2.9% year-on-year, but it was still higher than the consumer price inflation rate of 2.7%.

Consumer dissatisfaction is growing. The Korea Consumer Organization Council issued a statement last month regarding BBQ's chicken price hike, saying, "While the price of the main ingredient, chicken, is falling, raising prices citing increases in other raw material costs is a selfish idea aimed only at maximizing the company's profits," raising their voices in protest.

As the burden of dining-out expenses grows, consumers are seeking relatively affordable health foods through meal kits and convenience stores. The number of consumers looking for 'cost-effectiveness' (performance relative to price) is increasing. The price of Olban Samgyetang (900g) sold at Emart Mall is 5,980 won, and Jayeonjui Jinsim Samgyetang (900g) is 6,980 won, about 10,000 won cheaper than the average dining-out cost of samgyetang. The same applies to chicken: the average price of frozen chicken is about 1,958 won per 100g, which is more than 25% cheaper compared to branded fried chicken (average 879g, 23,000 won).