[Initial View] 'Samgyeopsal with a Glass of Soju' Is a Thing of the Past

[Asia Economy Reporter Kwangho Lee] "Nothing is not rising."

Prices are rising for everything we enjoy eating and drinking daily, including fresh and processed foods as well as dining out. The saying that everything except salaries is going up feels very real.

Starting today, soju prices will also rise one after another. Leading the increase is HiteJinro, the industry leader, with its Chamisul and Jinro brands, followed by Muhak (Joeun Day, White) and Bohae Brewery (Ipsaeju, Yeosu Bamdaba), which will raise their wholesale prices next month. Lotte Chilsung Beverage (Chum Churum) is also weighing the timing of a price hike.

The companies each claim it was an unavoidable choice. The price of ethanol, the key raw material for soju, has risen for the first time in 10 years, and the prices of essential items such as bottle caps and the handling fees for empty container deposits have also increased, making it impossible to endure further.

However, the increase in soju wholesale prices is likely to lead to a chain reaction of price hikes for products sold in restaurants and pubs, inevitably increasing the burden on ordinary people.

Signs of price increases are already being detected in various places. On an online community, posts and comments are flooding in about plans to raise soju prices from the current 4,000 won per bottle to 5,000 won. Kim Young-gyu (38), who runs a hof (Korean pub) near Gangnam Station in Seoul, said, "After observing the trends of nearby stores, we plan to raise soju prices by 500 to 1,000 won starting next month."

Beer, the perfect companion to soju, also faces price increase factors. From April, due to the application of the revised Liquor Tax Act, the tax on beer will rise to 855.2 won per liter, 20.8 won higher than last year. Besides taxes, the prices of raw materials such as barley and aluminum have also risen significantly in recent years.

The price of samgyeopsal (pork belly), which pairs well with soju, is also continuously rising. According to the Korea Consumer Agency's Chamgagaek Information Service, as of January, the average selling price of 200g of samgyeopsal at major restaurants in Seoul was 16,983 won. In other words, ordering 3 to 4 servings of samgyeopsal with soju at a restaurant easily exceeds 100,000 won. Going forward, the phrase "Let's have a glass of soju with samgyeopsal," which comforted ordinary people, is unlikely to be said easily.

The bad practice of companies rushing to raise prices during times when the government's price control weakens toward the end of an administration must disappear. This happened during the 2017 Rose Election following the impeachment and removal of President Park Geun-hye, and also just before the 18th presidential election. It was the same in the past. Whenever a vacuum appeared, companies inevitably exploited it.

We are currently in a special situation. The prolonged COVID-19 pandemic combined with high inflation is making the financial situation of ordinary people even more difficult. In particular, concerns have been raised that the consumer price inflation rate could soar to the 4% range this month due to the fallout from the Russia-Ukraine conflict.

The consumer price inflation rate rose to the 3% range for the first time in 9 years and 8 months in October last year (3.2%), and has remained in the 3% range for four consecutive months: November (3.8%), December (3.7%), and January this year (3.6%). Once living costs rise, it is very rare for them to fall again.

While understanding the companies' situation, if they could consider ordinary people even a little, it is necessary to show consideration by delaying the timing of price increases. The government must also mobilize all available means to come up with effective measures.

This content was produced with the assistance of AI translation services.