Winter clothing such as padded jackets and coats are not showing the usual ‘spring peak season’
"Even though workload increases, no profit is being made" "There are places where they store laundry without processing it"
Government says, “It is difficult to provide support due to lack of budget allocation”
The cost of raw materials used in laundries, such as dry cleaning solvents, has surged due to the war in the Middle East, exacerbating management difficulties for self-employed laundry owners. Although spring is typically considered a peak season with a surge in laundry volume, the sharp rise in solvent prices has made it difficult to continue operations without raising prices.
"From 36,000 won to 80,000 won" - Dry cleaning raw material prices up 130%
According to industry sources on May 6, the price of solvent, a key raw material for dry cleaning, has increased by about 130% compared to before the war. Solvent, which used to cost around 36,000 won per 18 liters, is now being sold at 80,000 won. While there are regional price differences, the price has more than doubled before and after the war. A laundry owner in Seodaemun-gu, Seoul, said, "The price of dry cleaning solvent per drum, which used to be 500,000 won, has doubled, making things extremely difficult," adding, "Even though the war has calmed down, it is uncertain how much longer the raw material price increase will last, which is very discouraging."
Spring is the peak season for laundry businesses, as the cleaning of winter outerwear such as padded jackets, coats, and knits increases. For laundries run by individuals, most of the demand is for dry cleaning, so the rise in raw material prices for dry cleaning inevitably leads to a decrease in income. This means that even as the volume of work increases, money is not being earned. This is why many laundries are raising or considering raising their service fees. Another self-employed laundry owner said, "With the price of solvent having risen so much, there is no choice but to raise the dry cleaning fees."
Even packaging materials like vinyl and hangers for laundry have gone up
To make matters worse, the prices of packaging materials such as vinyl and hangers used for wrapping laundry have also increased, further raising costs. CleanTopia recently raised the price of vinyl shopping bags provided to franchisees by 30%. A CleanTopia representative explained, "We have carefully reviewed both the timing and extent of price adjustments for some material categories, and have implemented increases only within an unavoidable and limited scope."
Laundry platform companies are also raising their prices one after another. LaundryGo announced on April 24 that it would increase its shirt laundry fee from 2,400 won to 2,900 won. The company explained that this was due to a 16.7% to 80% surge in the price of service materials. According to the Ministry of Data and Statistics' report on personal service prices, the average laundry fee in Seoul increased from 9,923 won in April of last year to 10,846 won as of March this year.
"Government support blind spot... cost burden may be passed on to consumers"
The laundry industry says that while instability in raw material supply persists, they remain in a blind spot regarding government support. Unlike gasoline, which is distributed at gas stations and subject to price controls, the government does not regulate petroleum products such as solvents. The Korea Laundry Business Association requested that relevant ministries, including the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, and the Fair Trade Commission, conduct monitoring of the solvent distribution process, price monitoring, and consider direct support. An association representative said, "There are laundries that are just stacking up received laundry because of the difficulties," adding, "We requested that the government provide direct support for material purchases for small business owners, but we have not yet received a response. Without support, the increased costs will inevitably be passed on to consumers through higher laundry fees."
The Ministry of SMEs and Startups stated that it is difficult to reflect the industry's demands because there is no allocated budget for direct support to small business owners affected by the Middle East war. A ministry official said, "Even in the supplementary budget, only low-interest loan items such as management stabilization funds have been allocated, and there is no legal basis or budget for direct support," adding, "Various sectors, including food service and transportation, are being affected, but since it is difficult to predict how long the war will last, we are currently listening to opinions from each sector while monitoring the situation."