Japanese Tourists Flock to "Buy Up Rice in Korea" as Domestic Rice Prices Continue to Soar

Seven Months Above 63,000 Won for 20kg of Rice...
Confusion Over Government Market Intervention and Cultivation Area Adjustment Policies

Rice is displayed on the sales counter at Hanaro Mart Yangjae Branch in Seocho-gu, Seoul.

The prolonged rise in rice prices is putting increasing pressure on both household grocery bills and overall dining-out costs. In particular, the increasing price of rice is directly translating into higher ingredient costs for restaurant dishes that use rice as a main component, such as gimbap, tteokbokki, and rice bowls, thereby further driving up perceived inflation.

According to the Korea Agro-Fisheries & Food Trade Corporation on March 19, as of March 18, the average retail price for a 10kg bag of rice was 36,214 won, up 23.1% from a year earlier and 25.8% higher than the average year. The price for a 20kg bag also rose 13.7% year-on-year to 62,951 won. In last month’s consumer price trend report, the price of rice had risen 17.7% compared to the previous year, nearly nine times the overall inflation rate (2.0%).

Seven Consecutive Months Above 60,000 Won... Prices Remain High Despite Repeated Measures

Since September of last year, rice prices have remained above the 60,000 won mark for a 20kg bag for seven consecutive months. Even now, prices continue to hover around 63,000 won, showing little sign of decline.

Rice stock photo. Pixabay

Previously, Song Mireyong, Minister of Agriculture, Food and Rural Affairs, stated at a press conference in August of last year that a retail price of 60,000 won for a 20kg bag of rice is a psychological resistance level at which consumers feel prices are too high, and promised to stabilize rice prices. Minister Song had repeatedly predicted that rice prices would decrease after the harvest season, but instead, they have continued to soar.

As the strength in rice prices persisted, the Ministry of Agriculture, Food and Rural Affairs announced at the end of last month that it would gradually release 150,000 tons of government rice reserves into the market. However, rice prices have barely moved in response.

2,000-Won Steamed Rice Appears... Restaurant Industry Hit Hard

The rise in rice prices is rapidly spilling over into dining-out prices. On food delivery apps, it is now common to find restaurants that have raised the price of a bowl of steamed rice from 1,000 won to 1,500 won. Some restaurants have even posted signs listing the price at 2,000 won.

Small business owners, including snack shops in Seoul, are voicing concerns over rising costs. Those in industries that use rice as a main ingredient—such as gimbap, tteokbokki, and rice bowls—are particularly hard-hit. With customer numbers falling due to the economic slowdown, the increase in raw material prices is further undermining profitability.

Citizens are lining up to taste Tteokbokki at the Seoul Gourmet Market held on Nodeul Island in Yongsan-gu, Seoul. Photo by Yonhap News.

Processed food prices have also risen in tandem. Last month, the price of tteok (rice cake) was up 5.1% year-on-year, three times the rise seen in bread (1.7%). Prices for popular restaurant items such as triangular gimbap (up 3.6%) and bibimbap or stews (over 3%) are also climbing across the board.

Ministry’s Excessive Market Separation and Reduced Cultivation Area... Failure to Accurately Estimate Rice Production and Consumption

Some point to government supply-and-demand policies as failing to reflect actual market conditions. The Ministry of Agriculture, Food and Rural Affairs had anticipated a rice oversupply last year and implemented large-scale market separation and policies to reduce cultivated area, but forecasts missed the mark due to a surge in demand for processed rice products. In fact, consumption of processed rice, such as tteok and instant rice, increased far more than expected, stoking fears of a supply shortage.

The reduction in rice cultivation area has also been cited as a factor in rising rice prices. Furthermore, there are concerns that rapid reductions in cultivation area could, in the mid to long term, increase instability in food supply. If climate variables are added to the mix, price volatility could become even more severe in the future.

Rice stock photo. Pixabay

Meanwhile, neighboring Japan is also seeing a prolonged rise in rice prices. Since 2021, rice production has not kept pace with demand, and last year's record heat and drought significantly worsened crop conditions. Analysts also point out that Japan's long-standing "production suppression policy" has contributed to a structural shortage of supply. As a result, a phenomenon known as "rice shopping"—where Japanese tourists buy rice in bulk while visiting Korea—has been observed.

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