[Report] "What is this, it really went up a lot" 'Edible Oil Crisis' Common People and Small Business Owners Sigh

Sharp Rise in International Edible Oil Prices Due to Russia's Invasion of Ukraine
Domestic Distribution Industry Implements Supply and Purchase Restrictions as a Last Resort
Self-Employed Worried, Asking "How Much Is the Edible Oil Delivery Price?"
Posts on Danggeun Market Offer Edible Oil for Oligodang Exchange
Experts Say "Edible Oil Crisis... Resolving Ukraine Risk Is Priority"

A display shelf of cooking oil at a warehouse-style discount mart. A notice stating "Purchase limit of 2 per person" is posted. On this day (the 12th), citizens met at the store expressed their burden from rising prices, sighing over the increased cost of cooking oil. Photo by Jin-geun Yoon PD yoon@asiae.co.kr

[Asia Economy reporters Han Seung-gon, Yoon Seul-gi, cultural intern reporter, Yoon Jin-geun PD] "The prices have gone up too much... Will they rise even more?"

On the 12th, citizens met at a warehouse-type discount mart hesitated in front of the cooking oil display shelves. An elderly couple who came to buy cooking oil said, "Since there is a limit of 2 bottles per person, should we buy 4 bottles together?" and hesitated for a long time. Consumers were bewildered by the unexpected purchase restrictions on cooking oil.

A man in his 40s, an office worker, was comparing the lowest internet prices for cooking oil on his mobile phone in front of the cooking oil shelves, contemplating his purchase. Among self-employed people, complaints such as "The supply price of cooking oil has risen a lot" are also emerging.

Choi, a housewife in her 30s, said, "I only heard that the price of oil (cooking oil) has gone up, but when I actually tried to buy it, I felt it significantly," expressing surprise. Another housewife in her 50s said, "The price has gone up a lot," and purchased a pack of four bottles of 'podoseeyu' (grape seed oil). On that day, more than 20 people crowded around the cooking oil shelves within 10 minutes, showing growing consumer anxiety over the rapidly rising cooking oil prices.

Meanwhile, on 'Danggeun Market,' a secondhand goods trading platform, posts suggesting bartering personal items for cooking oil have even appeared. As a result, some are saying that this is practically a cooking oil crisis.

Recently, as international cooking oil prices have risen sharply, the domestic distribution industry has implemented emergency measures such as limiting the number of cooking oil purchases per person. According to the industry on the 13th, Emart Traders, a domestic warehouse-type discount mart, has limited the purchase of cooking oil to 2 bottles per person at 20 Traders stores nationwide.

Foreign warehouse-type discount mart Costco is also reportedly limiting some cooking oil products at all its branches to one purchase per person per day. The situation is similar in other countries' distribution industries. The UK, Spain, Greece, Turkey, Belgium, and others have consecutively introduced cooking oil purchase restrictions.

Amid the cooking oil shortage, self-employed vendors selling fried foods are sighing deeply. The photo shows a merchant at Gwangjang Market in Seoul on the afternoon of the 12th. The photo is unrelated to specific expressions in the article. Photo by Han Seung-gon hsg@asiae.co.kr

Currently, cooking oil prices continue to rise due to the war in Ukraine, the largest exporter of sunflower oil. According to the Korea Consumer Agency's comprehensive price information portal Chamgagyeok, the average selling price of Ottogi soybean oil (900mL) in May was 4,916 won. It rose 33.8% compared to the same period last year, and during the same period, Haepyo cooking oil (900mL) also increased from 4,071 won to 4,477 won.

The industry has started to regulate sales by controlling the pace of sales to consumers who purchase cooking oil in large quantities. A representative of a warehouse-type store explained, "There is not yet a problem with cooking oil sales," but added, "However, warehouse discount stores limit purchases to 2 bottles per person to provide purchasing opportunities to many customers."

Warehouse discount stores sell various industrial products at prices 5-20% cheaper than market prices, attracting consumers' popularity. Because of this, so-called 'cooking oil hoarding' phenomena can occur, and the industry appears to be adjusting supply and demand accordingly.

As cooking oil prices have risen sharply, the sighs of ordinary people have deepened, and self-employed people are facing a difficult situation. On Korea's largest self-employed community 'Apeunikka Sajangida' (Because It Hurts, I'm a Boss), posts with urgent titles such as "Questions about cooking oil purchase routes" and "How much do you get cooking oil for?" are being posted.

One self-employed person expressed anxiety in a post titled "Cooking oil crisis, should I buy in advance?" saying, "When the urea water crisis happened last time (although the response was late), I think the government should do something to solve this. Will they?"

On 'Danggeun Market,' there was even a post suggesting exchanging oligosaccharide syrup for cooking oil. Another member posted a plea saying, "Please share used cooking oil."

A cooking oil container placed on one side of Gwangjang Market. Merchants expressed concerns that if cooking oil prices continue to rise, it could negatively impact their business operations. Photo by Seunggon Han hsg@asiae.co.kr

Self-employed people who need cooking oil to operate their businesses are expressing anxiety. A man in his 50s met at Gwangjang Market in Seoul that afternoon said, "If cooking oil prices go up, people who sell bindaetteok (mung bean pancakes) will be immediately affected." He added, "I don't mainly sell bindaetteok, so it's not a big problem for me, but I'm still a bit worried." Another man in his 40s said, "If cooking oil prices rise, we will have to consider consumer prices as well."

Experts analyzed that cooking oil prices can only stabilize once the war ends. Professor Kim Tae-gi of Dankook University's Department of Economics said, "The cooking oil crisis depends on the stabilization of the Ukraine issue. Ukraine is the biggest supplier. But it's not easy to predict. Russia has to stop the invasion. Ultimately, it depends on Putin."

He continued, "In Korea, cooking oil purchase restrictions have been introduced. But these are voluntarily implemented by marts. The government should not mediate prices or quantities but encourage the use of alternatives when cooking oil prices rise. Voluntary purchase restrictions at marts mean not to hoard. I think this is a good method in this situation. This is the principle of the market."

Regarding the impact on prices of cooking oil and other items, he forecasted, "Ukraine has many scarce resources, but the war has disrupted supply sources. Factories have been bombed, etc. Other items may also be affected."

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