Presidential Office on Green Onion Price Controversy: "Large Fluctuations Due to External Factors... Highest Price During Moon Administration"

Presidential Office Actively Refutes Opposition Criticism on Website
Special Measures to Minimize Retail Price Increases
Mentions Vegetables, Fruits, Livestock "Lower than During Moon Administration"
Plans to Strictly Crack Down on Large Retailers' Excessive Profits

The Presidential Office on the 26th actively refuted opposition criticism that it failed in price policies for agricultural, livestock, and fishery products such as green onions, stating that "prices of agricultural, livestock, and fishery products fluctuate greatly due to external factors." It particularly emphasized that the issue is not unique to the current administration by referring to the time during the Moon Jae-in government when the price of green onions soared to 7,000 won per bundle, giving rise to the new term 'Patech'.

The Presidential Office stated in the 'The Fact Is' section on its website that "even during the previous administration, green onions were priced at 7,000 won per bundle, and new terms like 'Patech' and 'Companion Green Onion' emerged, but the large price fluctuations of green onions are mainly due to their sensitivity to weather conditions and the rotation of major production areas," it said.

The Presidential Office explained that vegetable prices are highly sensitive to weather conditions such as droughts, monsoons, and heavy snowfalls, and that essential ingredients like green onions have major production areas that rotate seasonally?winter (Jeonnam), spring (Gyeonggi and Jeonbuk), and summer (Gangwon and Gyeonggi)?which amplifies the impact of damage in certain regions.

President Yoon Suk-yeol is conducting an on-site inspection of vegetable prices, including green onions, at the vegetable section of the Nonghyup Hanaro Mart Yangjae branch in Seocho-gu, Seoul, on the 18th. [Image source=Yonhap News]

It also emphasized that vegetable prices were at their highest during the previous Moon Jae-in administration from 2020 to 2022, and that the Yoon Seok-yeol administration is implementing extraordinary measures to minimize the rise in retail market prices felt by consumers while ensuring that agricultural producers do not suffer losses.

The government does not intervene in wholesale prices but maintains producer prices by supporting delivery prices, providing discounts, and directly supplying imported fruits, thereby alleviating consumer burdens.

Specific price trends were also presented. During the previous administration from 2020 to 2022, prices were highest due to disasters and COVID-19. For example, the retail price of napa cabbage surged to 10,740 won per head in September 2020, the highest in the past eight years, but stabilized to 5,718 won in September 2023 and 3,607 won this month under the Yoon administration, the Presidential Office explained. The retail price of green onions also rose to 6,981 won per kilogram in March 2021, the highest in eight years, but recorded 3,539 won this month.

Regarding wholesale prices of fruits, it was noted that "due to reduced production in 2023, 2023?2024 prices are the highest, but retail prices were highest in 2021 during the previous administration," emphasizing that the current government has not influenced wholesale prices but has implemented policies such as discount support. Additionally, prices of livestock products and eggs have decreased compared to the previous administration.

The Presidential Office’s explanation is interpreted as a rebuttal to opposition attacks ahead of elections regarding President Yoon’s remark about green onions costing 875 won. On the 18th, President Yoon visited the Hanaro Mart Yangjae branch in Seocho-gu, Seoul, and during a conversation about green onion prices, he said, "Still, 875 won per bundle of green onions is a reasonable price."

The Presidential Office stated, "Hanaro Mart Yangjae branch was able to sell green onions at 875 won because government price stabilization policies were gradually reflected on the ground, and Hanaro Mart’s own discounts were included." The pre-discount price was 4,250 won, but with delivery price support of 2,000 won, internal discounts of 1,000 won, and agricultural discount support (discount support for agricultural and livestock products) of 375 won applied, the final sale price became 875 won. Hanaro Mart branches in Yangjae and Seongnam have been selling at 875 won per kilogram since the 18th.

The Presidential Office emphasized that Hanaro Mart achieves low prices for agricultural and livestock products by minimizing distribution margins, reducing distribution costs, and offering high internal discount rates, and that "unlike other marts, Hanaro Mart does not sell imported agricultural and livestock products, allowing government policy support funds to focus on discounts for domestic agricultural and livestock products."

Furthermore, the Presidential Office reiterated plans to strictly crack down on large retailers seeking excessive profits. It explained, "The government is collaborating with consumer organizations to check whether major retailers are making excessive profits on agricultural and livestock products," and "the government is ensuring that various support measures for price stabilization, such as discount support and tariff reductions, directly translate into reduced consumer burdens."

It added, "If inspections reveal that retailers are profiteering and causing leakages in the government’s all-out efforts, strong administrative measures will be taken to respond strictly," and "in the mid to long term, the government plans to induce reductions in agricultural product distribution costs through competition in distribution channels, such as revitalizing online wholesale markets for agricultural products."

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