"Abundant Hangawi is a thing of the past" Commoners sigh amid high prices hitting Chuseok

Food Prices Up 8.4% Compared to Last Year
Processed Food and Public Utility Price Increases Expected After Chuseok

As prices are expected to continue rising around Chuseok, the concerns of ordinary people are also deepening.

[Asia Economy Reporter Kim Jeong-wan] #. Park (45), a father of two children, recently started preparing for the Chuseok ancestral rites table and grew increasingly worried as he organized his expenses. Park said that despite cutting back on dining out to save money amid rising prices, he had no choice but to open his wallet for purchasing Chuseok seasonal goods this month. He lamented, "I prepared the ancestral rites table simply, but everything got more expensive, so the cost was about the same as last year," adding, "I’m worried because prices are expected to rise even more after Chuseok."

With Chuseok just four days away, complaints are emerging that the once bountiful ancestral rites table is now a thing of the past due to overall increases in food prices, including dining out costs. Public utility fee hikes for electricity and gas are also planned, raising concerns among ordinary citizens that the post-Chuseok period will be even more difficult.

According to the Statistics Korea National Statistical Portal (KOSIS) on the 6th, food prices last month rose 8.4% compared to a year ago. This is the highest increase in 13 years and 4 months since April 2009 (8.5%). The food and non-alcoholic beverage category, which includes bread and grains, meat, seafood, fruits, vegetables, snacks, and frozen foods, rose 8.0%, maintaining the highest level since February last year (9.3%).

Dining out prices also increased by 8.8% compared to a year ago, marking the highest level since October 1992 (8.0%). By item, prices rose significantly for △Galbitang (beef rib soup) (13.0%) △Jjajangmyeon (black bean noodles) (12.3%) △Gimbap (12.2%) △Haejangguk (hangover soup) (12.1%) △Hamburgers (11.6%). Dining out prices have increased for 21 consecutive months since November 2020 (1.0%). Notably, the rate was in the 5% range in January this year, 6% range from February to April, 7% range in May, and has been in the 8% range for three consecutive months in June (8.0%), July (8.4%), and August (8.8%).

Due to the impact of Typhoon 'Hinnamnor,' the 11th typhoon to hit Korea, agricultural product prices are also showing signs of a sharp rise. According to Teran, which calculates the Farm Air and Hankyung Agricultural Product Price Index (KAPI), the agricultural product price index reached 216.35 as of the 3rd, up 4.15 points (1.9%) from the previous day, marking the highest level since data collection began on January 3, 2013. Compared to the previous week, prices surged for △Cabbage 85.3% △Green chili peppers 69.1% △Cherry tomatoes 56.2% △Paprika 48.2%.

Due to the impact of typhoons and other factors, agricultural product prices are expected to continue rising even after Chuseok. [Image source=Yonhap News]

Agricultural product prices are expected to continue rising after Chuseok, fueling concerns about the 'table price.' Due to poor agricultural supply caused by heatwaves and heavy rains since July, supply disruptions may worsen after the holiday peak season. A representative from a major supermarket said, "As Chuseok approaches, the prepared stock is running out, and typhoon damage to crops near harvest time seems likely to worsen."

In addition, prices of processed foods such as ramen, fermented milk, and cheese are expected to rise after Chuseok. Nongshim announced plans to raise prices for 26 items, including 'Shin Ramyun,' by an average of 11.3% starting the 15th. hy (formerly Korea Yakult) will increase the price of its flagship product 'Yakult Light' from 200 won to 220 won per bottle (65mL) starting next month. Dongwon F&B plans to raise prices for nine products, including 'Denmark Unsalted Cheese' (252g), cheese, yogurt, and Coolpis (180?930mL), by an average of 21% starting next month.

Public utility fee hikes for gas and electricity are also anticipated, deepening the worries of ordinary citizens. Gas fees are expected to rise from 1.90 won per MJ (unit of gas heat energy) to 2.30 won next month. According to the Korea Power Exchange, the wholesale gas price for September (heat unit price) is 144,634 won per Gcal, up 13.8% from last month. Electricity rates are also expected to increase by 4.9 won per kilowatt-hour (kWh). The System Marginal Price (SMP), the wholesale electricity price applied when Korea Electric Power Corporation purchases power from power plants, reached a record high of 245.42 won per kWh on the 2nd (mainland basis). This was an increase from 228.96 won on the 1st, which had already set the highest level in 10 years and 7 months, marking another rise just one day later.

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