FAS/Seoul Monitoring of Media Reporting on Agricultural Issues 

Today's Date: Thursday, September 12,  2024

For Coverage:  September  7 ~ 12, 2024

Food Prices in Korea Remain High 
https://www.koreatimes.co.kr/www/biz/2024/09/175_382266.html
Summary:  A large number of Korean consumers feel that the prices of everything, especially food, are still high despite government efforts to reassure them. Economists say that high prices of staple products have remained elevated since the pandemic years. According to Statistics Korea, the fresh food price index rose 3.2% in August compared to last year. The index for agricultural produce, livestock, and seafood increased 2.4%. Prices of pears and apples rose 120% and 17% respectively and the prices of cabbages and radish, key ingredients for kimchi, jumped 94.6% and 58.6%. The Bank of Korea noted that the prices of necessities such as clothing, food, and housing are about 55% higher than the average for OECD member countries.

International Dairy and Oil Prices Rise While Sugar, Meat and Grain Prices Fall 
http://www.foodnews.co.kr/news/articleView.html?idxno=109781
Summary:  The Food and Agriculture Organization of the United Nations (FAO) food price index dropped slightly in August compared to the previous month. Global dairy and oil prices rose over the same period while sugar, meat, and grain prices fell. According to the FAO, the world food price index was 120.7 points in August, down 0.3% from the previous month. In the same period, the diary and oil price indexes stood at 130.6 points (2.2%+) and 136 points (0.8%+), respectively. On the other hand, the sugar, meat and grain price indexes were 113.9 points (4.7%-), 119.5 points (0.7%-) and 110.1 points (0.5%-), respectively. According to the Ministry of Agriculture, Food and Rural Affairs, tariff-rate quotas are being applied to food ingredients such as raw sugar, sugar, and sunflower seed oil to ease the burden on food companies and stabilize consumer prices due to rising international prices of some food ingredients.

Korean Fried Chicken Tops Foreign Tourists’ Regional Delicacies 
https://www.koreatimes.co.kr/www/biz/2024/09/126_382095.html
Summary:  Korea’s largest payment processing company, BC Card, said that Korean fried chicken was the most popular dish picked by foreign tourists visiting Korea for three years, from 2022 to 2024. The result came from aggregated payments foreign tourists made on local delicacies during their visit to Korea. BC Card also said that international tourists spend more money on eating Korean fried chicken than anything else during their stay outside Seoul. Following Korean fried chicken, which is most representative of Daegu in the southeast of Korea, jajangmyeon, a Korean-style Chinese noodle topped with black bean sauce, ranked second in the western part of Gyeonggi Province and Incheon over the same period. Incheon is a home to Korea’s largest Chinatown. Also from the same area, soy sauce-marinated crab took third place due to the global popularity of K-dramas, K-movies, and other Korean media. Soy sauce-marinated crab was not commonly tried foods in the past due to its taste and appearance. In addition, soft tofu from northeastern Korea and pork rice soup from southeastern Korea are quickly gaining international tourists’ attention for the same reason.

USMEF Seoul Office Donates Lunchboxes with American Meat to Local Children’s Centers 
https://view.asiae.co.kr/article/2024090611275344214
Summary:  The U.S. Meat Export Federation (USMEF) Seoul Office announced that it carried out a social contribution activity, ‘2024 Meat Attack,’ to deliver a variety of delicious and nutritious lunchboxes with American meat to children at local children’s centers for the upcoming Chuseok holiday. At this event marking its 3^rd year, USMEF donated lunchboxes, featuring international dishes made with U.S. beef and pork, to more than 230 children. USMEF Representative Park, Jun Il said at the event that they will continue social contribution activities to help their neighbors in need.

Soaring Coffee Bean Prices are Burdening Café Owners 
https://www.ksilbo.co.kr/news/articleView.html?idxno=1008186
Summary:  Café owners are suffering from increased coffee bean prices. According to statics from aT (Korea Agro-Fisheries Trade Corp.), prices of Robusta coffee beans, often used for low-priced coffees, went up 40% (4,383.52 USD/ton) in August this year from the same month last year. Prices of Arabica coffee beans, mainly supplied to large-scale cafe chains, rose by 36% (3,418.23 USD/ton) in August this year compared to the same month last year. This has impacted café businesses. A café owner in Ulsan in Korea commented that the price for roasted coffee beans went up by over 60% this year compared to the last year due to increased green bean prices. Additionally, a wholesale price for milk has risen to about 2,500 KRW/liter from approximately 1,900 KRW/liter in September of last year. According to data from the Ministry of SMEs and Startups, the growth rate for new café openings had been on an upward trend for the last several years until recently, but it has dropped significantly, by -16.1%, this year. An industry insider in Korea’s Ulsan region noted that, the barrier to enter the café business is very low, and competition is already intense, and therefore, despite the increasing costs of raw materials, cafés cannot easily raise their product prices. Amid the ongoing economic downturn and high costs of living, many cafés in the region have been experiencing sales decrease.