Mr. A, who runs a tteokbokki shop in Jung-gu, Seoul, is no longer happy to receive delivery orders these days. This is because he is running low on packaging containers. He had managed so far with his remaining stock, but once that runs out, he will have to repurchase packaging containers at prices that have risen by more than 50%. With barely any profit left after deducting various expenses, the surge in packaging container prices has only added to his frustration.

The prolonged Middle East war is aggravating the business difficulties of small foodservice businesses that rely on domestic demand. The long-feared price hikes for packaging containers and vinyl bags are now having a tangible impact. The Ministry of SMEs and Startups has recognized the situation and decided to swiftly implement support programs for small business owners, backed by the supplementary budget.

As prices of packaging materials such as plastic and vinyl have risen due to the Middle East war, a citizen is seen browsing products at a packaging materials store in Bangsan Market, Jung-gu, Seoul. Photo by Yonhap News Agency

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According to industry sources on April 15, the price of raw materials for plastic packaging containers, commonly used in the foodservice sector, has soared by about 30% compared to before the Middle East war, leading to an overall increase of more than 50% in packaging product prices. For example, the "105-pi packaging container," mainly used for soups, cost about 95,000 won for two boxes (2,000 units) at the beginning of this month, but now the price is approaching 150,000 won. This represents a sharp 58% price increase. The problem is that the instability in naphtha supply continues, making price stabilization unlikely in the near future. Foodservice operators now face the dilemma of either purchasing packaging containers at sharply increased prices or even being unable to secure them at all.

In response, the Ministry of SMEs and Startups organized a meeting with the Korea Foodservice Industry Association, which represents the foodservice sector, to assess the impact of the expanding Middle East war on small business owners and to hear about their business challenges. During the meeting, the Ministry and the Association shared updates on the rising prices and supply status of packaging containers and vinyl bags used in restaurants-issues directly linked to the Middle East war-and discussed relevant support measures funded by the supplementary budget.

In addition, there was discussion on proposals from the Korea Foodservice Industry Association to the government, including measures to boost the sales of local small businesses and revitalize the foodservice industry overall.

Lee Byungkwon, Second Vice Minister of the Ministry of SMEs and Startups, is delivering opening remarks on the 15th at the "2nd On-Site Difficulties Meeting for Small Business Owners Related to the Middle East War (Foodservice Industry)" held at the Korea Foodservice Industry Association in Jung-gu, Seoul. Ministry of SMEs and Startups

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Lee Byung-kwon, Second Vice Minister of the Ministry of SMEs and Startups, stated, "Through this meeting with foodservice small business owners, we were able to hear in detail about the current business environment by sector. Based on this, we plan to prepare relevant support measures and institutional improvements." He added, "We will continue to hold such sector-specific meetings and, at the same time, will swiftly implement support programs for small business owners affected by the Middle East war and other challenges, using the supplementary budget that has been allocated."