FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Friday,  December 15,  2023

For Coverage:  December 10 ~ 14, 2023

Avian Influenza Antigen Detected at Jeonnam Province Duck Farm...  Investigation on Whether It is Highly Pathogenic

https://n.news.naver.com/mnews/article/001/0014389455?sid=102
Summary:  On the 14^th, an Avian Influenza (AI) outbreak was identified on a farm in Jeonnam province.  The Central Control Headquarter, overseen by the Minister of Agriculture, Food and Rural Affairs, is now taking initial steps to address this issue.  This farm, housing 21,000 ducks, was discovered to have AI during a routine inspection the day before.  The area, under the management of the Central Control Headquarter, is swiftly undergoing quarantine measures, restricting movement for vehicles associated with the duck farm until the next day.  This incident marks the tenth occurrence of AI in poultry farms during this winter season.

Kimbap and Kimchi Stew are Not Anymore Simple Foods that People can Enjoy Frequently...  The Cost of Eating Outside Keeps Going Up

https://n.news.naver.com/mnews/article/277/0005354732?sid=101

Summary:  Throughout this year, prices of dining out have consistently been on the rise.  Recent findings reveal that two out of eight major menu items for eating out saw price hikes last month.  Specifically, kimbap, rice and vegetables rolled in laver, increased from 3,254 KRW to 3,292 KRW, and kimchi stew, a dish made with kimchi, vegetables, and meat, rose from 7,846 KRW to 7,923 KRW comparing October to November prices.  This escalating trend in dining costs is prompting consumers to shift towards Home Meal Replacement (HMR) options available.  Emart, a leading hypermarket in Korea, has notably seen a significant surge in HMR sales according to the distribution industry.  Last year, HMR ranked 8th in sales but has risen to 2^nd place this year.

The Best Selling Product at Curly This Year is Vegetables
http://www.foodnews.co.kr/news/articleView.html?idxno=105897
Summary:  A retail tech company in Korea, Curly, found that its best selling product this year was vegetables.  Curly announced on the 14^th that vegetables ranked first with a total of 40 million units as a result of counting product sales this year.  It is equivalent to 1.38 units sold per second every day.  The company’s efforts to provide vegetables at stable prices throughout the year have paid off, even in a situation where vegetable prices have soared.  The second place in sales was home meal replacement (HMR).  In HMR category, Samiheon Galbitang (short rip soup) selling over 900,000 units took first place following last year.  Side dishes, ranked third in sales, showed the highest growth rate of 11 percent compared to the same period last year.  The sales growth of side dishes turned out to be remarkable as more consumers choose home-cooked meals due to the burden of eating out.

Korea Consumer Agency Identifies 37 Foods that Have Reduced Product Sizes Over the Past Year

https://www.foodnews.co.kr/news/articleView.html?idxno=105868

Summary:  One of the societal concerns is companies avoiding price hikes under government pressure, and instead reducing product quantities to withstand these pressures.  This practice has coined the term 'Shrinkflation,' blending 'shrink' and 'inflation,' signifying inflation caused by shrinking product sizes.  The Korea Consumer Agency investigated using the website discovered that within three categories of processed foods, 19 products have decreased their total amount per package.  There was a decrease in total amount which ranges from 7.7 percent to 12.5 percent in recent year.  Also, when they investigated through a reporting center, they found out that 18 products including milk and candies have decreased the total amount of the product in a package.  The Korea Consumer Agency plans to continually monitor both the prices and quantities of processed foods, aiming to provide consumers with additional information to empower them in making reasonable choices.

Canada’s Affordable Coffee 'Tim Hortons' Lands in Gangnam...  Twice as Expensive Than Original Price

https://www.news1.kr/articles/5258813

Summary:  Tim Hortons, the renowned Canadian café chain, has launched its café in Seoul’s Gangnam district, marking its entry into the Korean market.  Their ambitious plan includes establishing more than 150 cafés across Korea.  Recognizing Korea’s thriving coffee market, the company sees it as a promising community.  To cater to Korean consumers, the menu development team diligently worked to tailor offerings to local preferences.  However, prices in Korea are notably higher—1.5 to 2 times that of the original Canadian pricing.  Tim Hortons Korea, managed by the franchise company BKR, justified these higher prices citing economic factors, market conditions, customer demands, and operational costs as key considerations in setting the selling prices. 

“2,000 KRW for a Meal”… 800,000 Units Sold in the Shortest Period of Time at Convenience Stores Making New Record

https://n.news.naver.com/mnews/article/015/0004923855?sid=103

Summary:  Amidst the consistent increase in food prices, GS25, a convenience store, aimed to offer budget-friendly food choices for its customers by launching a small lunch box priced at just 2000 KRW.  The response was remarkable, with sales reaching 200,000 within two weeks and recording 800,000 in six weeks.  This achievement secured the top spot in GS25's kimbap sales and boasted an impressive 90 percent sales ratio.  Moreover, the primary consumers of this product were found to be individuals aged between 20 and 30.

Starbucks' Popularity Declined Due to the Low-Cost Coffee Craze?… 'Opposite Result'

https://n.news.naver.com/mnews/article/015/0004924195?sid=101

Summary:  In the past, coffee shops offering low-priced coffee used to attract a large number of customers.  However, these cafes have seen a significant decline in customer numbers lately.  According to Mobile Index, a data analysis platform, there has been a noticeable drop in the number of consumers looking for affordable coffee shops.  Their analysis, based on coffee shop app usage, observed a decrease in November compared to the previous month specifically in the usage of cheaper coffee shops.  Popular budget-friendly cafes like Compose Coffee and Mega Coffee experienced a decrease in customers by 10 percent and 7 percent respectively.  On the contrary, Starbucks and Twosome Place, known for their focus on quality coffee and large space, saw a rise in customer numbers by 4 percent and 27 percent respectively.  Professor Kim, specializing in Consumer Economics at Sookmyung University, explained this trend as a situation where individuals, especially in 20s, perceive Starbucks as more economical due to the extended time they can spend there.  They can study, enjoy their coffee, or engage in various activities for a long period.

CJ CheilJedang Launches ‘Arrive Tomorrow’ Delivery Service, ‘O-NE’
http://www.foodnews.co.kr/news/articleView.html?idxno=105822
Summary:  CJ CheilJedang introduces ‘Arrive Tomorrow’ service (O-NE) at its official mall, CJ The Market.  CJ CheilJedang said, “Arrive Tomorrow delivery service (O-NE), officially launched on the 11^th at CJ The Market, allows customers to receive their orders the next day in most parts of the country if ordered before 11 p.m.  We plan to further increase customer satisfaction based on our competitiveness in fast and accurate delivery”.  Starting with the introduction of this service, CJ CheilJedang plans to expand to other platforms such as Naver’s brand store next year.  As of the end of November, the cumulative number of CJ The Market members exceeded 3.5 million.

Beer and Soju Prices on Rise Starting from Last Month

https://news.kbs.co.kr/news/pc/view/view.do?ncd=7838034&ref=A

Summary:  Korea Statistics reports a notable increase in the prices of soju and beer during November.  The Consumer Price Index reveals a 5.1 percent rise, reaching 112.45 compared to the same period last year.  Specifically, soju prices increased by 4.7 percent from October to November.  This surge in consumer prices is attributed to domestic alcohol companies raising their production costs.  OB Beer and HiteJinro have escalated their ex-works prices (factory prices): OB Beer by 6.9 percent since October and HiteJinro by 6.95 percent for soju and 6.8 percent for beer.  This increase presents a challenge for consumers during the end of year, a time when many people dine out with friends or colleagues to celebrate the passing year and the coming new year.  LotteChilsung, alongside OB Beer and HiteJinro, also plans to raise prices for their soju and beer products, although the exact timing remains undecided.  Additionally, the price of ethanol, a key ingredient in soju, had risen in April, but companies refrained from increasing the selling cost until October.