One Apple at the Mart Costs 10,000 Won... 28% Increase in 4 Years on Lunar New Year Table [Chosun Price Records]

One ritual apple (380g) 9,900 KRW. One Singo pear 8,900 KRW. Ahead of the major Korean holiday Seollal, the price of one ritual apple or pear sold at E-Mart approaches 10,000 KRW. The cost of the Seollal ancestral rites table has risen about 28% over the past four years. This year recorded the highest increase rate due to a 40-50% surge in apple and pear prices compared to last year. Although the government has launched an "unprecedented measure" to control prices of Seollal seasonal goods, prices have not stabilized easily due to prolonged high inflation and poor crop yields.

On the 9th, Korea Price Information surveyed the cost of the ancestral rites table for a family of four at traditional markets and large supermarkets, finding an 8.9% and 5.8% increase respectively compared to the previous year, setting a new record high. The cost of the Seollal ancestral rites table has risen every year, with costs at traditional markets and large supermarkets as follows: ▲2020: 219,700 KRW, 304,110 KRW ▲2021: 240,700 KRW, 344,200 KRW ▲2022: 244,500 KRW, 352,630 KRW ▲2023: 254,500 KRW, 359,740 KRW ▲2024: 281,500 KRW, 380,580 KRW.

As Seollal shopping basket prices soar, the burden on ordinary citizens has increased. According to the Rural Development Administration's analysis of the "2024 Seollal Agricultural Food Purchasing Characteristics," 98% of consumers responded that "shopping basket prices are burdensome." The rate of those feeling very burdened reached 71%, and 27% felt burdened. The response rate for finding fruit purchases burdensome was 65%, and 43.9% of consumers said they reduced their fruit purchases due to high prices.

The rise in ancestral rites table costs is due to poor crop yields caused by abnormal weather such as heatwaves, heavy rain, and cold waves, reduced supply due to pests and diseases, and increases in raw material and labor costs. Seasonal goods that experience concentrated demand at specific times begin to see price increases even before the holiday.

In 2020, African Swine Fever (ASF) and autumn monsoon and typhoons influenced cost increases. In 2021, abnormal low temperatures in spring, abnormal high temperatures in early summer, the longest recorded monsoon period, consecutive typhoons and pest damage in autumn, Arctic cold waves, and highly pathogenic avian influenza caused the rise in ancestral rites table costs.

Price increases due to external factors continued after 2022. Many items saw price hikes influenced by COVID-19, and the Seollal ancestral rites table prices steadily rose due to reduced production caused by changes in cultivation area and temperature. The 'three highs' phenomenon of high inflation, high interest rates, and high oil prices triggered by the Russia-Ukraine war also affected price increases.

However, even considering these factors, the increase in ancestral rites table costs outpaces the overall inflation rate. Compared to four years ago in 2020, this year's Seollal table setting cost has increased by more than 28%. According to Statistics Korea's "January Consumer Price Trends," the year-on-year increase rate for apple prices was 56.8%. Prices of pears (41.2%), green onions (60.8%), tangerines (39.8%), and other fruits and vegetables rose significantly. Compared to the consumer price index, the increase rate is quite steep. Taking the 2020 consumer price level as 100, the rates were ▲2021: 102.50 ▲2022: 107.72 ▲2023: 111.59, showing about an 11% increase over the past four years.

The government has prepared measures to stabilize livelihoods during Seollal. With a budget of 84 billion KRW, it plans to raise discounts on agricultural, livestock, and marine products up to 60%. Specifically, it will supply a record-high 257,000 tons of 16 major seasonal products, swiftly introduce zero-tariff quota volumes for fruits, and increase the maximum government discount support rate to 30%.

Professor Eunhee Lee of Inha University's Department of Consumer Studies said, "If the price index is below 3% annually, it can be considered stably managed, but the Seollal ancestral rites table cost has risen 28% over four years, which is a very large increase. Especially, the steep rise in food prices such as fruits has made it difficult for consumers to bear."

She evaluated that the implementation of quota tariffs on imported fruits is far from managing Seollal prices. Quota tariffs are a system that lowers tariff rates on specific imported goods for a certain period. The government designated six fruits as quota tariff items: bananas, pineapples, mangoes, avocados, oranges, and grapefruits. Professor Lee explained, "Mangoes, pineapples, and avocados are not fruits we commonly seek during holidays. Even with discounts, the perceived effect will be limited."

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