Surge in Cabbage Prices Sparks Wave of Gimpo-jok... What Are This Year's Kimchi-Making Costs? [Chosun Price Records]

(36) Cabbage Growth Recovery and Increased Shipment Volume Stabilize Prices
Red Pepper Powder, Ginger, and Salt Prices Similar to Last Year or Decreasing

Concerns are growing about the rising costs of kimchi-making due to the increased price of napa cabbage. However, since an increase in cabbage supply is expected after mid-October and prices of agricultural products used as kimchi ingredients such as red pepper powder, ginger, and garlic are on a downward trend, delaying the kimchi-making season by one to two weeks is likely to keep the cost burden manageable.

The sharply rising cabbage prices are currently stabilizing. According to the Agricultural Products Marketing Information Service (KAMIS) on the 8th, the retail price of napa cabbage is 8,758 won per head. Although this is still about 26% higher than last year's price (6,937 won), it has dropped 12% from the peak on the 27th of last month (9,963 won).

On the 27th, when the high price trend of cabbage continued, cabbages were being sold at Garak Market in Songpa-gu, Seoul. Photo by Yonhap News

It is a recurring phenomenon every year that cabbage prices rise ahead of the kimchi-making season. In 2019 and 2022, typhoons caused a sharp decline in cabbage shipments, leading to prices more than doubling compared to the previous year. In 2020, a prolonged rainy season of about 50 days caused price instability. In 2021, cabbage soft rot disease affected entire heads, and last year, poor crop conditions and rising prices of key kimchi ingredients such as salt and red pepper powder stimulated kimchi-related inflation.

This year, cabbage prices surged due to poor early autumn cabbage crop conditions. Napa cabbage is vulnerable to high temperatures, and the unusual heatwave lasting until mid-September affected its growth.

The fortunate aspect is that prices of most kimchi supplementary ingredients are similar to or lower than last year, reducing the burden of rising kimchi costs. As of the 7th, the retail price of red pepper powder (product, 1kg, China) is 13,391 won, maintaining a price similar to last year (13,504 won). Onion prices also dropped 6.5% to 2,149 won compared to last year (2,149 won) as of the same date, and ginger (14,816 won) fell 21% from last year (18,756 won). Salt prices also decreased by about 20% from last year (14,192 won). As of this date, the retail price of salt (product, 5kg) is 11,441 won.

However, some items are showing an upward trend. Peeled garlic (product, 1kg) rose slightly to 10,346 won from last year's 9,874 won. Garlic (product, 1kg) also increased by 4.8% to 10,346 won from last year's 9,874 won. In particular, the price of radish (product, 1 piece) surged about 46% to 3,751 won from last year's 2,567 won.

Kimchi-making season approaching... Cabbage price outlook

Kimchi. Photo by Pixabay

The cabbage currently being shipped is grown in semi-highland areas such as Pyeongchang and Hoengseong in Gangwon Province. Due to the high temperatures sustained until mid-September, growth was poor, leading to reduced production. However, with the temperature dropping, growth has begun to recover, and shipments will start from Mungyeong and Yeongyang in Gyeongbuk, Goesan in Chungbuk from late this month, and from Haenam in Jeonnam, the largest production area, in November, likely easing the cabbage price burden.

Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, said on the 9th, "If weather conditions are favorable, cabbage shipments will increase significantly from late October, allowing consumers to feel a price drop," adding, "Prices have generally started to decline this month."

The Korea Rural Economic Institute also stated in its October issue on leafy vegetables, "Although the production of semi-highland second-crop cabbage has decreased due to high temperatures and drought, causing poor early autumn cabbage crop conditions, shipment prices will expand after mid-October, increasing weekly shipment volumes," and "Autumn cabbage crop conditions are recovering, so supply and demand during the kimchi-making season will be better than now." Regarding the radish price increase caused by adverse weather, it predicted, "Although summer radish production will decrease, reducing shipments in October, shipments of relatively well-grown semi-highland second-crop radish and autumn general radish will begin, increasing shipment volumes."

The government also expects agricultural and livestock product consumer prices to remain stable as cabbage supply and demand are projected to stabilize. In fact, the year-on-year increase rate of the agricultural and livestock product consumer price index has been declining: 13.1% in March → 12.0% in April → 9.8% in May → 7.3% in June → 6.2% in July → 2.5% in August → 2.2% in September.

The Ministry of Agriculture, Food and Rural Affairs plans to encourage early shipment of some autumn cabbage by providing shipment subsidies and to import fresh cabbage to reduce shortages. Additionally, to lessen consumer burden, the discount period for cabbage sold at large supermarkets will be extended if necessary.