"We Used to Eat It for the Price... Now Year-End Parties Are at Chinese Restaurants" U.S. Beef Hit Hard by Exchange Rate [Week+Money+Talk]

Food Prices Soar Amid High Exchange Rate
Beef Prices Up 60% in Five Years
Pork Prices Also Rise by 30%

Editor's NoteWe are living in a time when a single serving of pork belly costs 20,000 won and a bowl of jjajangmyeon is 7,500 won. The 2024 Consumer Price Index stands at 114.18 (2020=100), and in 2025, the lingering effects of high inflation have further increased the burden on consumers' grocery bills. Through the "Week+Money+Talk" series, we aim to share stories about ever-changing prices and consumption trends that directly impact our wallets.

Customers visiting Yangjae Hanaro Mart in Seocho-gu, Seoul, are looking at Korean beef. Photo by Jinhyung Kang aymsdream@

Due to the rise in the won-dollar exchange rate, the price of imported beef has increased by about 60% over the past five years. Imported beef had been considered a relatively affordable alternative to Korean beef, but as the exchange rate has fluctuated around 1,480 won, consumers are feeling a heavier price burden.

Imported Beef Prices Rise as Exchange Rate Surges

According to the Korea Institute for Animal Products Quality Evaluation on December 27, the average price this month for U.S. chilled beef short ribs is 4,904 won, up 15.9% from 4,231 won a year ago. The price of U.S. chilled chuck eye roll also rose 22.3% during the same period, from 3,162 won to 3,858 won.

The surge in imported beef prices has been heavily influenced by the high exchange rate. As the value of the won declined, import prices soared, which in turn increased inflationary pressure domestically. In fact, last month, the import price of beef rose by 10.3% year-on-year in dollar terms, but when adjusted for exchange rate fluctuations, the increase in won terms reached 15.4%. For pork, the increase was 6.8% in dollar terms, but 11.7% in won terms, further adding to consumer burdens.

The difference is even more pronounced compared to five years ago. Last month, the beef import price index stood at 160.57 in won terms and 129.99 in dollar terms. Compared to 2020, the increase was about 30% in dollar terms, but when reflecting the exchange rate, the increase in won terms was 60.6%-double the rate.

Number of Cattle Raised in the U.S. Hits Lowest Level in 74 Years

On the 21st, at the meat section of a large supermarket in downtown Seoul. Photo by Yonhap News

In addition to exchange rate pressures, worsening supply conditions in the U.S. are also driving up import prices. According to the American Farm Bureau Federation (AFBF), the number of cattle raised in the U.S. has dropped to its lowest level in 74 years. This is because the profitability of cattle farming has declined, leading many ranchers to leave the livestock industry.

AFBF economist Bernt Nelson pointed out in a report last May that "despite record-high beef prices, high production costs have left farmers with almost no profit." In other words, the combination of higher import unit prices due to the exchange rate and reduced supply in the U.S. has made imported beef significantly more expensive in Korea.

This exchange rate impact is also evident in imported pork. Over the past five years, imported pork prices rose just 5.5% in dollar terms, but the import price in won terms increased by 30.5%. The exchange rate is being cited as a key factor driving up the price of imported livestock products.

Year-End Party Menu Choices Also Affected..."Opting for Chinese Restaurants"

Given these circumstances, consumers are feeling a significant burden regarding imported products. Some are even changing their company dinner menus from meat to other foods to reduce costs. Kwon Dohee, a 31-year-old office worker in her fifth year, said, "We used to go to barbecue restaurants for year-end gatherings, but this year we had our company dinner at a Chinese restaurant," adding, "Compared to barbecue or Japanese restaurants, Chinese restaurants are relatively less expensive, so that's why we chose it."

Meanwhile, as exchange rate volatility increases, consumer sentiment is showing signs of further contraction. According to the Bank of Korea's "Consumer Survey for December 2025," the Consumer Composite Sentiment Index (CCSI) for December was 109.9, down 2.5 points from 112.4 in November. This is the largest drop since December last year, when there was a state of emergency (-12.3 percentage points).