Koreans Sensitive to Chicken Prices... 'No Chicken' Boycott Emerges

The 'Chicken' Controversy Heating Up Korean Society... Cases Involving the Cheongwadae as Well

Some consumers are protesting as famous chicken franchise companies raise their prices. / Photo by Song Hyundo, Asia Economy intern reporter

[Asia Economy Reporter Lim Juhyung, Intern Reporter Song Hyundo] As major chicken franchise companies simultaneously raised their prices due to soaring inflation, some consumers have expressed frustration. On online communities and social networking services (SNS), a 'No Chicken' campaign boycotting franchise chicken has even emerged.

On the 18th, an image titled 'Boycott Franchise Chicken' was posted on the online community 'FM Korea,' attracting netizens' attention. This image is a parody of the 2019 Japanese product boycott movement 'No Japan,' and it calls for refusing to purchase franchise chicken. The image also included phrases such as "We do not order. We do not eat," and "In the era of 30,000 won chicken prices, consumers have the right to choose."

The so-called 'No Chicken' campaign poster that appeared on an online community and became a hot topic / Photo by Online Community Capture

This so-called 'No Chicken Poster' became a hot topic with over 200,000 views and more than 300 comments. Netizens responded with comments like "The quantity and quality remain the same, but only the price goes up," and "Since everyone still buys it even after the price increase, the companies probably don't feel pressured."

Since the end of last year, well-known domestic franchise companies have raised chicken prices by about 1,000 to 2,000 won. Adding delivery fees of 3,000 to 4,000 won or more, the price of one whole chicken is approaching around 25,000 won. Some consumers are voicing dissatisfaction, saying that chicken, once a representative affordable food, has become a high-priced dish.

◆Koreans Sensitive to Chicken Prices... Government Also Involved in 'Tongkeun Chicken' Controversy

In fact, chicken prices have long been a sensitive topic of debate in Korean society. Consumers strongly opposed price hikes, while franchises and franchisees argued that they could not survive without raising chicken prices.

In March, when Yoon Hong-geun, chairman of Genesis BBQ, appeared on a radio show and claimed, "(Chicken prices) should be about 30,000 won, not 20,000 won now," netizens responded sharply with comments like "If the price doesn't fit, then close the business," and "Are you trying to make even more profit after leaving that much?"

On December 9, 2010, customers lined up in long queues to purchase Lotte Mart's 'Tongkeun Chicken'. / Photo by Yonhap News

The 2010 controversy over Lotte Mart's chicken brand 'Tongkeun Chicken' is a representative case where franchises and franchisees opposed low-price competition in chicken prices. Tongkeun Chicken was a typical 'cost-effective chicken' brand competing with a low price of 5,000 won and large portions. At that time, franchise chicken prices were already approaching 15,000 won, and Tongkeun Chicken, about one-third cheaper, was enough to cause a stir among consumers.

However, franchises strongly criticized it on the grounds that "large corporations threaten the market of small self-employed businesses with low-price offensives." Franchise owners staged protests to stop sales, and even threatened to report Lotte Mart to the Fair Trade Commission, accusing the chicken sales of 'dumping' (unfair trade).

Jung Jin-seok, Senior Secretary for Political Affairs at the Blue House, expressed concern in a post on his social media account during the 'Tongkeun Chicken controversy,' saying, "Small-scale chicken sellers have reason to be upset." / Photo by Twitter capture

The government also voiced concerns about Tongkeun Chicken. At the time, Jeong Jin-seok, the Blue House political secretary, wrote on his Twitter account, "Lotte Mart sells each chicken at a loss of about 1,200 won. Small chicken sellers have reason to be upset," and questioned, "Could 'Tongkeun Chicken' be a 'big strategy' to attract buyers to the mart to purchase other goods?"

Following fierce opposition from self-employed business owners and criticism from the government, Lotte Mart eventually halted the Tongkeun Chicken business just one week after its launch.

◆"Companies Need Careful Pricing Considering Social Responsibility"

Experts point out that consumers react more sensitively to chicken than other foods because of its special status in Korean society. They suggest that pricing should be handled carefully when selling products familiar to public sentiment.

Professor Lee Eun-hee of Inha University's Department of Consumer Studies explained, "Chicken is used as a major protein source in many countries because it is easier to cook and cheaper than pork or beef. Korea also has a tradition of eating chicken soup as a health food in summer, and chicken is a 'common people's food' that particularly resonates with Korean sentiment."

She added, "The recent chicken price hikes seem to conflict with this public sentiment. Especially, franchise companies increased prices simultaneously during the inflation period after their business profits rose during the COVID-19 crisis, which caused even more backlash."

She emphasized, "Since franchises hold a large market share, if franchise companies raise prices, overall consumer spending may shrink. Companies should carefully set prices by broadly considering not only profitability but also social responsibility."

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