Ahead of Chuseok, food prices for the dining table are stirring again. In particular, beef prices, which see concentrated demand for memorial rites and gifts, are rising noticeably. There are concerns that price instability could worsen if demand increases as the government moves to provide the second round of consumption coupons.
According to the Korea Agro-Fisheries & Food Trade Corporation (aT) and the Korea Institute for Animal Products Quality Evaluation on the 3rd, as of the 1st, the average retail price of grade-1 beef tenderloin was 13,521 won per 100 grams. That is up 9.4% from the same period a year earlier. The sirloin cut also rose to 10,520 won per 100 grams, 9.7% higher than a year earlier. With Chuseok approaching, both tenderloin and sirloin climbed by about 1,000 won per 100 grams from a month earlier, adding to the burden on shoppers.
Wholesale prices are also firm. The Korea Rural Economic Institute (KREI) Agricultural Outlook Center projected that from early September to early October, the Chuseok peak season wholesale price for Hanwoo (castrated steers) would be in the 20,000–21,000 won per kilogram range. That is about 7.9% higher than the same period last year. The number of head available for shipment during the Chuseok peak season fell 1.8%, and the effect of consumption coupons paid since last month is overlapping, making it likely that upward pressure will continue.
The rise in Hanwoo prices is also pushing up prices of relatively cheaper imported beef and pork. U.S. beef short plate (frozen) was 5,030 won per 100 grams, up 6.1% from a year earlier. Domestic pork front leg, often used for skewers and bulgogi, was 1,661 won, up 11.4% from a year earlier.
Not only livestock products but also rice and glutinous rice prices are clearly on the rise. The retail price of a 20-kilogram bag of rice was 67,327 won, 27.08% higher than last year. Glutinous rice used to make tteok such as songpyeon surged 61.9% to 6,437 won per kilogram.
Vegetables, however, are relatively stable. Onions (-13.7%) and napa cabbage (-30.61%) fell sharply from a year earlier. Expanded spring stockpiles and improved harvests had an effect. Potatoes (14.8%) and green chili peppers (11.5%), however, are still on the rise.
To stabilize prices, the government is pushing supply expansion and stronger discounts. The Ministry of Agriculture, Food and Rural Affairs is increasing the supply of Hanwoo to 1.5 times normal levels and pork to 1.3 times, and is running discount events of up to 50%. Traditional markets are also holding Onnuri gift certificate rebate events in parallel.
Consumers, however, still feel differently. With prices of practical necessities like beef, rice, and eggs remaining high, complaints continue that "even with discounts, the shopping basket burden does not ease."
In particular, some retailers are engaging in "deceptive discounts." The Korea National Council of Consumer Organizations recently investigated holiday gift sets from eight companies, including CJ OnStyle, Hyundai Home Shopping, and GS Shop, and uncovered cases in which list prices were raised while only the discount rate was hyped in ads.
For example, in the case of a Hanwoo set, a product that was sold at a list price of 185,000 won with a 5% discount at 175,750 won in the first survey was, two weeks later, raised to a list price of 205,800 won and sold at a 20% discount for 163,820 won. The actual discount was just over 10,000 won, but it was made to look like a steep markdown. Another Hanwoo set changed from a 69% discount to a 74% discount, but the sale price remained 149,900 won.
Seok Byung-hun, a professor of economics at Ewha Womans University, said, "When consumption coupons are provided, demand for items like beef is likely to increase, potentially causing prices to rise," adding, "Demand increases due to the holiday rush, and if the second round of consumption coupons overlaps, the upward price factors for those items could grow."
Lee Eun-hee, a professor in the Department of Consumer Science at Inha University, noted, "There are cases of livestock prices being raised through tricks ahead of holidays, and the government should have closely examined price trends," adding, "It is necessary to actively monitor price fluctuations before and after the holiday peak season to prevent market disruption."