Prices of Key In-Season Agricultural and Livestock Products Rise Around Holidays
Government Launches Special Task Force of Related Ministers on Livelihood Prices
Intensive Inspections of Essential Livelihood Items Announced
Post-Holiday Price-Sta
As the government has launched a minister-level task force (TF) aimed at stabilizing grocery prices, attention is focusing on whether the upward trend in prices of key agricultural and livestock products, which has increased consumer burdens around traditional holidays every year, will finally ease.
According to the Consumer Price Index (2020=100) on the National Statistics Portal (KOSIS) as of the 20th, prices of major seasonal staples such as meat, fruit, and vegetables have continued to rise even after the Lunar New Year since 2023, instead of falling. For example, the consumer price index for apples recorded 150.21 and 163.71 in January and February 2024, when the Lunar New Year holiday fell, and it was also high in January and February last year at 146.96 and 160.01, respectively, all above the baseline of 100. For pears, the consumer price index in February last year, right after the Lunar New Year, hit 188.44, and during the same period, domestic beef, pork, eggs, and cucumbers also exceeded the baseline at 107.58, 119.26, 132.71, and 182.33, respectively.
Prices of major agricultural and livestock products are also highly likely to remain higher than average even after this year's Lunar New Year. According to KAMIS, the agricultural and fishery product distribution information service operated by the Korea Agro-Fisheries & Food Trade Corporation (aT), the wholesale price of Korean beef (Hanwoo) as of the 13th, right before the holiday, was 21,611 won per kilogram, 22.1% higher than the average year. Pork (grade 1+) was 5,113 won per kilogram, up 17.1% from the average year, and the price of eggs (30 extra-large eggs) rose 15.1% to 5,193 won. For apples, the wholesale prices per 10 kilograms of top-grade and mid-grade products were 50,950 won and 45,001 won, respectively, up 13.2% and 35.5% from the average year.
Among vegetables, the wholesale price for 100 cucumbers (Dadagi variety) was 94,091 won, 31.3% higher than the average year, while Cheongyang chili peppers (10 kilograms) rose 28.6% to 1,330,905 won. Since wholesale prices of agricultural and livestock products are generally reflected in retail prices with a lag of about one week, the post-holiday increase is expected to be passed on to consumer prices after the Lunar New Year.
In a recently published report titled "Diagnosis and Tasks for Price Stabilization Measures for Agricultural and Livestock Products Ahead of the Lunar New Year Holiday," the Korea Rural Economic Institute (KREI) analyzed the reasons why prices of fruits such as apples and pears have continued to rise even after the holiday in recent years, noting that "a chronic shortage of supply relative to demand after the Lunar New Year has sustained the upward price trend." The report added, "Overall fruit demand has not changed much compared with the past, but as the volume of large-sized fruit preferred by consumers has decreased, products that meet the grade standards are traded at higher-than-average prices, while mid-grade products are sold at relatively lower prices in the retail market."
In response, on the 11th the government formed the "Special Ministerial Task Force for Intensive Management of Cost-of-Living Prices," chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, with the chairperson of the Fair Trade Commission serving as vice chair, and began focusing its work in the first half of this year. The TF consists of three teams: an Unfair Trade Inspection Team, a Policy Support Misuse Inspection Team, and a Distribution Structure Inspection Team. Deputy Prime Minister Koo stressed, "We will intensively inspect cost-of-living items that are closely linked to people's daily lives to eradicate unfair trade practices, and if there are distorted distribution structures, we will correct them swiftly."
Distributors are also concentrating their efforts on price stabilization after the holiday in line with the government's policy direction. Emart is holding discount promotions on daily necessities and food items through the 25th. It offers a 20% discount on branded pork front and hind leg cuts (chilled) and three types of frozen Korean beef when customers accumulate Shinsegae Points, and up to 30% off on back-to-school items such as tablets and parallel-imported bags.
Lotte Mart is holding a promotion for imported pork called "Kkeut Dwae DAY" through the 25th, offering its flagship products "Kkeut Dwae pork belly and neck (each 100g, chilled, Canadian)" at 990 won for L.POINT members. Homeplus is also applying a 40% discount for My Homeplus membership customers, selling "U.S. Choice chuck flap tail and Prime chuck eye roll" at 2,760 won and 2,820 won, respectively, and "U.S. Choice short ribs (100g)" at 3,990 won. "Early-harvest lettuce (whole head, domestic)" is being offered at a special membership half-price of 1,990 won.
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