On the morning of the 14th at an ice factory in Bucheon, Gyeonggi Province. When factory head Yun Jun-il, 56, opened the thick freezer door, a biting chill poured out as if pushing back the muggy outside air at 32 C and 75% humidity. Goosebumps quickly rose on the arms of the reporters standing in short sleeves in front of the storage.
Inside the storage, hundreds of large ice blocks as tall as a person were stacked like a wall. One block weighs 145 kg. White chill billowed up between the layers of ice piled nearly to the ceiling. While a heat wave raged outside the factory, the storage stayed at minus 18 C.
Yun, who has run the factory as a family business for 39 years, is effectively operating around the clock these days. He has increased output by about 20% from usual and hauls ice all day on weekends. "As the weather gets hotter, orders keep coming in and we can't stop the factory," Yun said. "Employees are working day and night on production and shipping."
As the heat wave continues, demand for ice at fish markets, big-box stores, and convenience stores is surging. Peak season has arrived for ice factories, but their faces are not exactly bright. That's because nonstop operation of freezers is pushing up electricity bills and labor costs together. With more competitors, rising sales don't immediately translate into increased revenue.
◇ "Three times the ice in summer"…fish markets also battle the heat wave
Ice produced at the Bucheon factory heads to traditional markets and fish markets across the greater Seoul area, as well as big-box stores. Ice for seafood distribution is supplied to nearby fish markets and production regions nationwide to keep live fish and seafood fresh.
A person surnamed Nam, 68, who works in the seafood business at Seoul's Gangseo Fisheries Market, said, "In summer we need more than three times as much ice as in winter. The hotter it gets, the faster ice melts, so we have to refill with fresh ice several times a day."
The market's internal temperature is kept at about 26 C, but the tanks and fish displays must be kept much colder. Even with the coolers running continuously, hot air comes in as merchants and customers move around, making it hard to cut ice use.
Nam said, "Electricity for coolers and the expense of buying ice both rise at the same time, so the summer burden is big. If the fish spoil, we have to throw out all the product, so we can't skimp on ice even if it's expensive."
The heat wave has also lifted sales of edible ice at convenience stores. In May this year, GS25's cup ice sales rose 54.5% from a year earlier. CU and 7-Eleven each saw about a 30% increase. Higher consumption of iced drinks combined with demand for outdoor activities and camping.
Convenience store chains are expanding ice production and delivery. CU is increasing partners' nighttime production and has shifted ice deliveries from six days a week to seven.
On the 11th and 12th, when the heat wave peaked, GS25 sold more than 1 million cup ices over two days. During the same period, CU's bagged ice and cup ice sales rose 181% and 80%, respectively, from three years earlier. Some stores are increasing cup ice orders ahead of lunch and evening commute times compared with usual.
◇ Producing 150 tons a day…when a heat wave hits, electricity bills also jump
At the ice factory, the work of moving freshly produced ice into the freezer storage continued nonstop. When the machine pushed out large ice blocks, employees used forklifts and handling equipment to move them. Meltwater ran across the floor and the sound of machines filled the factory.
This factory produces about 150 tons of ice a day. Given that one block weighs 145 kg, daily output exceeds 1,000 blocks. Tap water purified on-site is used as the raw material.
Most of the ice produced is shipped out immediately. About 200 tons of ice are currently stacked in the freezer storage in preparation for peak season. The factory expects the stockpile to run out in August, when the heat wave reaches its peak.
"Once we fully enter peak season, orders increase further and it's hard to take weekends off," Yun said. "We even need to hire four additional employees to handle production and shipping."
The problem is that the more ice they make, the more the expense rises along with it. Yun's electricity bill for August last year was about 1 billion won. Not only must the freezers run all day, but as outside temperatures climb, cooling efficiency drops, requiring more power to make the same amount of ice.
"If you set winter electricity costs at 100, summer is close to 150," Yun said. "The more severe the heat wave, the more orders we get, but electricity bills climb just as fast."
Keeping the freezer storage at minus 18 C also incurs a significant expense. Every time ice is shipped out, the door opens and hot outside air pushes into the interior.
In fact, when the storage door opened, the thermometer near the entrance quickly rose from minus 7 C to 4.2 C. When the door closed, the freezer roared again as it began dragging the internal temperature back down.
◇ Sales fall while labor costs rise…"even if we sell a lot, nothing is left"
Labor costs are also growing. As production and shipping continue around the clock, extra staff must be deployed during peak season. Even if ice sales rise, electricity bills and labor costs increase together, making it hard for profitability to improve much.
Competition among companies has intensified. While the overall ice market has grown with the heat wave and greater iced drink consumption, Yun said the share each company takes is actually shrinking as new factories and producers increase.
"Looking at the overall ice market, demand keeps rising, but the number of competing firms has grown just as much," Yun said. "Our factory's sales have also fallen by about 5% each year in recent years."
Inside the factory, large ice blocks kept pouring out that day as well. Each time employees moved ice, the freezer door opened and cold air flowed into the hot factory. The freezer then ramped up again to bring the temperature back down.
Yun closed the freezer door and spoke.