"If Only They Dined In"... Tteokbokki Packaging Container Prices Jump 50%, Restaurant Owners Sigh

Mr. A, who runs a tteokbokki shop in Jung-gu, Seoul, no longer welcomes delivery orders these days. This is because his stock of packaging containers is running low. Although he has managed with inventory until now, once he runs out, he will have to purchase containers at prices that have risen by over 50%. Even under normal circumstances, there is little profit left after various expenses, and with the recent sharp increase in packaging container prices, his concerns have only deepened.

The prolonged Middle East war is exacerbating operational difficulties for small business owners in the food service sector whose businesses rely on domestic demand. The ongoing concern over rising prices for packaging containers and plastic bags is now beginning to have a tangible impact. The Ministry of SMEs and Startups has recognized these circumstances and has decided to swiftly implement small business support programs that reflect the supplementary budget.

Amid rising packaging material prices, a citizen visiting a packaging material store in Bangsan Market, Jung-gu, Seoul is looking over the products. Photo by Yonhap News.

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According to industry sources on April 15, the price of plastic packaging containers commonly used in the food service industry has soared, with the cost of raw materials alone jumping by around 30% compared to before the Middle East war. As a result, the overall price of packaging products has increased by more than 50%. In fact, the "105-pi packaging container," mainly used for soups, was priced at about 95,000 won for two boxes (2,000 units) at the beginning of this month, but now it is close to 150,000 won. This represents a sharp price increase of approximately 58%. The main issue is the ongoing instability in the supply of naphtha, making price stabilization unlikely in the near future. Restaurant owners now face the prospect of either buying packaging containers at these dramatically increased prices or even experiencing difficulties sourcing them at all.

In response, the Ministry of SMEs and Startups held a meeting with the Korea Foodservice Industry Association, which represents the food service industry, to assess the impact of the expanding Middle East war on small business owners and to hear about their operational challenges. During the meeting, the Ministry and the Association discussed the rise in prices and current supply status of packaging containers and plastic bags used in restaurants, shared updates on the business conditions of small business owners affected by the Middle East war, and reviewed related support measures organized through the supplementary budget.

In addition, discussions were held on proposals from the Korea Foodservice Industry Association to the government regarding ways to promote the revitalization of the food service industry, including measures to boost sales for small business owners in the region.

Lee Byung-kwon, Second Vice Minister of the Ministry of SMEs and Startups, is giving a welcoming speech at the "2nd On-site Meeting on Challenges of Small Business Owners Related to the Middle East War (Food Service Industry)" held on the 15th at the Food Service Industry Association in Jung-gu, Seoul. Ministry of SMEs and Startups

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Byungkwon Lee, Second Vice Minister of the Ministry of SMEs and Startups, stated, "Through this meeting with small business owners in the food service industry, we were able to hear in detail about current business conditions by sector, and based on this, we plan to develop relevant support measures and institutional improvements." He added, "We will continue to hold industry-specific meetings in the future, and at the same time, we plan to provide prompt support for small business owners facing difficulties due to the Middle East war and other factors, through small business support programs that incorporate the supplementary budget."

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