Flounder Prices Surge Amid Scorching Waters as Heatflation Hits Seafood

[Anchor]

It is time for Friendly Economy with reporter Han Jiyeon on Monday. Han, I heard that flounder prices have risen sharply recently.

[Reporter]

A 300g serving of flounder costs around 25,000 won, and wholesale prices have jumped by more than 13% over the past year.

Flounder is also known as neobchi.

It has a flat body with both eyes on one side, and its meat is mild and chewy, making it a fish that even those unfamiliar with raw fish can enjoy without hesitation.

Yesterday, when I opened a delivery app to order some, a small portion for one person was about 39,000 won, and a medium portion for two or three people was around 50,000 won.

Anyone who has visited a supermarket recently would have been surprised by the prices.

A 300g pack is priced around 23,000 won, with some reaching up to 26,000 won.

300g is typically a good amount for two people to have as a light snack with drinks.

Given that it costs around 25,000 won now, it is quite stark compared to just three months ago in early May, when a supermarket sold 360g for about 19,000 won during a discount event.

Even though the weight was heavier back then, the current price is much higher.

Wholesale prices tell the same story.

From the end of last month to the beginning of this month, the average auction price for 1kg of farmed flounder stood at 22,300 won.

This is an increase of over 13% compared to the same period last year.

It is not just flounder.

Gizzard shad (gudeop) has risen from 7,000 won per kilogram last year to 17,000 won now, while rockfish (ureok) is maintaining a price of around 25,000 won per kilogram.

In short, prices for raw fish across the board are currently on an upward trend.

[Anchor]

It seems these prices have also risen due to the heat.

[Reporter]

As high-water-temperature alert zones have tripled in just four days, damage to fish farms is expanding.

Concerns are growing that these prices could rise even further.

Looking into why flounder prices have spiked like this, it is because the oceans are boiling entirely.

According to government figures, reports of farmed fish damage from high water temperatures exceeded 360,000 fish as of the 3rd.

This is more than a fivefold increase compared to the same point last year.

I focused heavily on flounder because it suffered the most damage among them.

In Wando alone, about 116,000 fish died, and around 33,000 fish perished in Jeju.

Flounder is a fish that originally prefers cool water between 18 degrees Celsius (64 degrees Fahrenheit) and 25 degrees Celsius (77 degrees Fahrenheit).

When seawater temperatures exceed 27 degrees Celsius (81 degrees Fahrenheit) or 28 degrees Celsius (82 degrees Fahrenheit), high-water-temperature damage can occur immediately.

Recently, however, water temperatures off the southern coast and around Jeju have soared close to 30 degrees Celsius (86 degrees Fahrenheit).

When seawater remains above 28 degrees Celsius (82 degrees Fahrenheit) for three consecutive days or more, a high-water-temperature warning is issued.

The number of areas under this warning stood at 6 on the 30th of last month, but surged to 17 in just four days.

The problem is that this is not the peak.

Because the ocean heats up and cools down more slowly than land, the seas around the Korean Peninsula are at their hottest from late August to early September.

Due to "heatflation," where intense heat pushes up prices, the rise in seafood prices is expected to peak in September.

There are also forecasts that prices could climb even higher if peak Chuseok holiday demand overlaps.

[Anchor]

Lastly, Nolboo, a brand famous for budae-jjigae (army stew), is reportedly struggling a lot these days.

[Reporter]

The Nolboo brand once expanded up to 33 different brands.

As the company struggled, seeing its franchise stores cut in half over two years, it ultimately filed for rehabilitation procedures with the court.

Nolboo, a name that comes to mind when thinking of budae-jjigae and bossam (boiled pork wraps), is a company that started from a small bossam restaurant in Seoul in 1987.

There was a time when it had 1,000 franchise stores and sales exceeding 120 billion won.

Things began to change, however, after a foreign private equity fund acquired the company in 2011.

Expanding continuously into seolleongtang (ox bone soup), coffee, snack foods, and braised chicken, the number of brands eventually grew to 33.

Yet, only 12 of those brands actually opened physical stores.

While diversification should be done in moderation, expanding too widely caused the core business of budae-jjigae and bossam to falter as well.

Amid intensifying competition in the dining industry and the impact of COVID-19, the company recorded consecutive operating losses for six years from 2017 to 2022.

Although it rebounded into a brief surplus in 2023, it plunged back into massive deficits last year.

The number of franchise stores nearly halved over two years, shrinking to a third of its peak level.

Sales also halved to 63.8 billion won, while operating losses surged to 8.7 billion won, 15 times the previous year's figure.

Consequently, on the 31st of last month, the company ultimately applied to the court to commence corporate rehabilitation procedures.

Four days later on the 4th, the court issued a comprehensive prohibition order preventing creditors from forcibly seizing or auctioning off the company's assets, temporarily halting debt pressure while the company figures out a way to stand back up.

Tomorrow, the court plans to directly summon Nolboo's representative to inquire about plans for repaying the debts.
※ Please note: This article was translated by AI and may contain errors.