Taking Advantage of Yoon's Martial Law... 7 Out of 10 Everyday Foods See Stealthy Price Hikes

71% of 73 Items See Price Hikes...
Dried Squid Strips Mark Highest Increase
Companies Likely Raised Prices Amid Impeachment Turmoil

It has been confirmed that the prices of processed foods have been steadily rising since the declaration of martial law by former President Yoon Suk-yeol in December of last year.

According to the National Statistical Portal (KOSIS) of Statistics Korea on June 8, as of last month, the price index for 52 processed food items?including chocolate, coffee, bread, instant noodles, and frozen foods?had increased compared to November of last year. This accounts for 71% of all 73 processed food items.

During this period, 19 items saw price increases of 5% or more. Chocolate prices rose by 10.4%, coffee by 8.2%. Seasoning sauces, vinegar, and salted seafood all increased by more than 7%. Bread, jam, ham, and bacon each rose by about 6%. Gochujang (Korean red chili paste) and bottled water also saw similar increases.

Citizens purchasing food at a supermarket in Seoul Photo by Yonhap News

Ice cream, probiotics, frozen foods, fish cakes, and instant noodles each recorded price increases of around 5%. Cakes, pickled radish, snack chips, convenience store lunch boxes, ready-to-eat meals, and mixed seasonings rose by 3?4%.

The item with the highest rate of increase was dried squid strips, which rose by 31.9%.

On the other hand, prices fell for 17 items, including cooking oil (-8.9%), tofu (-4.1%), noodles (-4.0%), and flour (-2.2%). Prices for four items, such as glass noodles, remained unchanged.

This increase in processed food prices began in earnest at the start of the year. Previously, companies had refrained from raising prices in cooperation with the government's price stabilization measures. However, it is believed that during the political turmoil following the impeachment, companies implemented price hikes all at once.

The Price Monitoring Center of the Korea Consumer Organizations Council stated, "In the past, some companies raised prices due to reasons such as surges in international grain prices or exchange rates. However, it is unusual that prices have risen simultaneously since the second half of last year, even though cost pressures have relatively eased during this period."

The center added, "For most companies, including Dongwon F&B, Daesang, Maeil Dairies, Binggrae, OB Beer, and CJ CheilJedang, the rate of change in cost of goods sold last year was similar to, or even lower than, the rate of sales growth. This suggests that prices may have been raised despite relatively modest cost pressures."