The Origin of Salt Bread Sells for 1,000 Won, but in Korea It's 3,000 Won... Why Bread Prices Here Surpass Advanced Countries [The Secret of Bread Prices]

4,200 Won for a Loaf of Bread... Higher Than in Advanced Countries
Bagels and Baguettes Also Priced Higher Than Locally

Editor's NoteAccording to consumer price trends released by Statistics Korea, in May, processed food prices rose by 4.1% year-on-year, while bread prices surged by as much as 6.4%. The consumer price index for bread reached 138.48, representing a 38.48% increase over five years compared to the base year of 2020 (100). This rise is steeper than that of tteokbokki and chicken, which are beloved snacks among Koreans. Bread, once an affordable treat for everyone, has now become a luxury that is difficult to choose without hesitation. How did bread prices in Korea end up rising so sharply?

Bread prices in Korea are ranked eighth highest in the world. The average price of a loaf of bread is in the 4,000 won range, which is more expensive than in major advanced countries such as the United Kingdom, Canada, and Sweden, all of which have a higher per capita GDP than Korea.

According to Numbeo, a global country and city statistics comparison site, as of June 11, the price of a 500g loaf of bread in Korea was $3.06 (about 4,200 won), ranking eighth out of 124 countries worldwide. Only seven countries had higher bread prices than Korea: Iceland ($4.07), Switzerland ($3.70), the United States ($3.64), Denmark ($3.43), Norway ($3.41), Luxembourg ($3.19), and Costa Rica ($3.14).

In contrast, the price of a loaf of bread was lower than in Korea in Sweden ($3.01), Austria ($2.86), and Canada ($2.71). The country with the cheapest bread was Algeria, where a loaf costs $0.16 (about 220 won).

The fact that bread prices in Korea are exceptionally high compared to other countries is evident not only in plain bread but also in other items. At 'Pan Maison,' a Japanese bakery known as the originator of salt bread, a salt bread currently sells for 120 yen (about 1,150 won) per piece. In Korea, Paris Baguette sells it for 2,800 won, and most major bakery chains price it at around 3,000 won. In particular, at popular privately owned bakeries, the price of salt bread soars to the high 4,000 won to low 5,000 won range per piece.

The situation is similar for bagels. At 'Ess-a-Bagel,' one of New York's top three bagel shops, a bagel costs $2.05 (about 2,800 won), but at Korean specialty bagel shops, prices are generally around 4,000 won. The average price of a baguette in Paris, France, is 1.19 euros (about 1,800 won), which is much lower than the high 3,000 won range found in Korea. As for pretzels, they are sold for 1.2 euros (about 1,800 won) at major bakery chains in Germany, while in Korea, they are priced in the 3,000 to 4,000 won range.

A display case of a bakery in Seoul.

Choi Jiwoong, Secretary-General of the Korea Bakery Association, explained the reasons why bread prices in Korea are exceptionally high compared to other countries. He stated, "Unlike consumers in the United States or Europe, Korean consumers tend to prefer products with abundant toppings. The price of bread varies depending on what ingredients are used and how much it weighs, and due to these preferences, the cost of ingredients inevitably increases." He also added, "The fact that we rely on imports for key ingredients such as wheat also affects bread prices." Furthermore, he said, "To address this, we are carrying out various initiatives, such as holding new product tasting events for confectionery and bakery items made with rice flour in cooperation with the Ministry of Agriculture, Food and Rural Affairs."