Working 10 Days in Korea Buys You an iPhone 16... But Some Countries Need 73 Days? [Curiosity Lab]

Customers are experiencing the iPhone 15 series at the Apple Store Myeongdong in Jung-gu, which was released domestically last October. Photo by Jinhyung Kang aymsdream@

The recently released iPhone 16 Pro (128GB) starts at 1.55 million KRW domestically. To buy an iPhone at 1.55 million KRW, you would need to work about ten days without spending anything. According to the "iPhone Index 2024" released by the global e-commerce platform 'Picodi,' South Koreans need to work 9.7 days to afford an iPhone. This ranks 17th shortest worldwide. In Switzerland, only 4 days of work are needed. The United States (5.1 days), Australia and Singapore (5.7 days) all require less than 5 days, while major European countries, like South Korea, require less than 10 days.

◆$999 iPhone 16 Pro: South Korea 9.7 days vs T?rkiye 73 days

Picodi calculated the iPhone Index by dividing monthly salaries published by national statistical offices by the average number of working days per month (21 days) or weekly wages by 5 days. So, which country requires the most days of work? T?rkiye tops the list, requiring a staggering 72.9 days to afford one iPhone. Last year, it was 123.7 days, so fortunately, it has halved. Following T?rkiye are the Philippines (68.8 days), Brazil (68.6 days), Vietnam (53.1 days), India (47.6 days), Thailand (42.3 days), Mexico (40.1 days), and Chile (34.1 days), all requiring more than one to two months of work.

From a Korean perspective, it would have been nice to have a Galaxy Index instead of the iPhone Index, but in the past, there was an Anycall Index. The Anycall Index first appeared in 2005 when the Asian Wall Street Journal used it to compare the price of Samsung Electronics' Anycall mobile phone (SGH-E800) across 11 major cities in the Asia-Pacific region, considering price levels and purchasing power.

PicoDee's iPhone Index 2024

◆Big Mac Index: Switzerland $9 vs Taiwan $2.5

Product or brand name indices were created to compare currency values and purchasing power across countries for the same product. The most representative is the British magazine 'The Economist's' annual 'Big Mac Index,' which compares prices of Big Macs and currency values worldwide.

As of July 2024 (in US dollars), Switzerland has the highest Big Mac Index, with a Big Mac costing $8.07. Uruguay ranks second ($7.07), Norway third ($6.77), Argentina fourth ($6.55), and the Eurozone fifth ($6.06). South Korea is around the middle at $3.99. The US ($5.69) surprisingly ranks high, while China ($3.57) and Japan ($3.53) are in the lower-middle range. The lowest Big Mac prices are in Taiwan ($2.46), Indonesia ($2.47), Egypt ($2.75), and India ($2.85).

The Big Mac Index represents the exchange rate that would equalize the price of a Big Mac in each country to that in the US. A high Big Mac Index indicates an overvalued currency, while a low index indicates undervaluation. The Starbucks Index, created by The Economist as a successor to the Big Mac Index, is based on the price of a tall size (355ml) caffe latte in various countries. Similarly, if the price of a tall latte in US dollars is high in a country, its currency is considered overvalued; if low, undervalued.

Starbucks promotional photos [Photo by Starbucks]

◆The Trending ‘Starbucks Index’: Switzerland Tops at $7.17 vs T?rkiye and Brazil Under $2

According to a 2023 analysis by 'SavingsSpot,' the most expensive Starbucks tall latte (US $3.26) is sold in Switzerland for $7.17. European countries like Denmark ($6.55), France ($5.36), the UK ($5.31), and Finland ($5.67) also have high prices. South Korea is mid-range at $4.11. Japan ($3.57), China ($4.23), and Taiwan ($4.86) are similar. In contrast, the same drink costs very cheaply in T?rkiye ($1.31) and Brazil ($1.96).

Considering purchasing power, countries where Starbucks coffee is most affordable include the US, Norway, Austria, Qatar, Luxembourg, Belgium, Australia, New Zealand, and Singapore. Conversely, Cambodia, India, Vietnam, El Salvador, Bolivia, Morocco, Azerbaijan, the Philippines, Indonesia, and Jordan are countries where buying Starbucks coffee is more burdensome.

◆In Japan, the Curry Rice Meal Index Soars

Unlike these indices, there is an interesting one in Japan. The food symbolizing the cost of a meal in Japan is the familiar curry rice. To cook curry rice yourself, you need rice, curry powder, ingredients, and utilities like electricity, gas, and water. In Japan, this is called the 'curry rice price.' Recently, Japanese media have reported that the curry rice price has been hitting record highs daily. As of July, the total cost to make one meal of curry rice was 342 yen (about 3,200 KRW). This is a 44 yen increase from the same month last year (290 yen) and the highest in 10 years since 2015. Prices have risen for 12 consecutive months since August last year, surpassing 300 yen. The rise in rice prices has significantly influenced this inflation.

Japan's Teikoku Databank's self-created 'Curry Rice Price Index' started at 100 in 2020 and recorded 124.8 in July this year, continuing a 14-month upward trend. Breaking down the cost of one curry rice meal, 60% is curry ingredients (meat, vegetables), which increased by 28 yen year-on-year to 211 yen. The rise in imported beef prices and steady increases in potato prices had a major impact. Rice prices also rose, with the cost per meal at 101 yen, up 14 yen from 87 yen the previous year, marking the highest in the past decade. Curry powder (24 yen to 25 yen) and utility costs (4 yen, unchanged) showed little change. It is expected that the cost will exceed 350 yen (about 3,300 KRW) in August and reach record highs again after September.

Nongshim operated the Shin Ramyun themed pop-up store at Carrefour Paris from July 29 to August 12.
[Photo by Nongshim]

◆Nostalgic Indices: Kimchi Stew Index, Anycall Index, Shin Ramyun Index

What is the representative meal in South Korea? In the past, the Overseas Koreans Newspaper released a Kimchi Stew Index. In 2004, 2007, and 2010, this media surveyed the prices of kimchi stew at Korean restaurants frequently visited by representatives of major companies from key cities participating in the World Korean Business Convention and World Korean Economic Forum. In 2010, using Seoul's kimchi stew price of 6,000 KRW as the baseline (index 100), the US scored an average index of 175 (9.4 USD, about 10,500 KRW). Tokyo, Japan, was 243 (1,052 yen, about 14,600 KRW), and China was 78 (28.12 yuan, about 4,700 KRW). Europe averaged 340, with Geneva, Switzerland, recording the highest index at 600 (30 CHF, about 36,000 KRW).

At one time, Nongshim announced the 'Shin Ramyun Index' in 2009 to mark the New Year, converting the price of one pack of Shin Ramyun sold worldwide into US dollars for comparison. According to the first 'Shin Ramyun Index' released by Nongshim after surveying 10 major countries, Germany had the highest price at $1.34 per pack, while China had the lowest at $0.44. In the US, one pack cost $0.89, and South Korea ranked eighth among the 10 countries surveyed at $0.57.

A scene featuring CJ CheilJedang's 'Bibigo Steamed Dumplings' on the famous American ABC channel talk show 'Jimmy Kimmel Live!'
[Photo by CJ CheilJedang]

◆Bibigo Index? Will There Be a K-Chicken Index?

If an index were to be created for K-food, what about a globalizing chicken or Bibigo index? CJ CheilJedang recently introduced a new Brand Identity (BI) and is accelerating globalization. As of last year, Bibigo is sold in over 70 countries, with more than 50% of its consumer base overseas. The globalization success of K-food has even been adopted as a case study at Harvard Business School. Notably, Bibigo dumplings surpassed 1 trillion KRW in global annual sales as a single product in 2020 and have held the number one market share in the US dumpling market since 2021.

BBQ Chicken Panama 2nd Branch Appearance
[Photo by BBQ]

The 600g Bibigo pork dumplings sell for 7.99 euros (about 12,000 KRW) or 7.30 euros (about 10,000 KRW) in European online stores. On Bibigo's US website, 24 oz (680g) sells for $8.99 (about 12,000 KRW). Although price differences between domestic and overseas markets are not yet significant, as premiumization and globalization progress, a Bibigo Index could be expected. Additionally, chicken franchises like BBQ, bhc, and Kyochon are expanding overseas, so if chicken globalization advances, indices like Kyochon Index, BBQ Index, and bhc Index could emerge as a K-Chicken Index.