Seafood Prices Surge Ahead of Chuseok Due to Heatwave

[Anchor]

It is time for "Friendly Economy" on Monday, with reporter Han Jiyeon. Han, you are talking about prices today (August 31).

[Reporter]

Prices of major seafood items such as squid, hairtail, and flounder are rising consecutively.

With less than a month left before the Chuseok holiday, seafood prices are already showing unusual signs.

First, looking at squid, a single squid costs over 5,000 won, which is more than 15% higher than last year.

Hairtail has risen by nearly 8% to around 14,000 won per fish, and Alaska pollock is up nearly 7% to the 4,000 won range.

In particular, Norwegian mackerel, which is widely popular, has jumped by more than 30% compared to last year, reaching around 11,000 won for a bundle of two fish.

Squid production last month dropped by nearly 30% compared to last year.

As for Norwegian mackerel, import volume itself plummeted to one-third of its level, dropping from 200,000 tons the year before last to around 80,000 tons this year.

Flounder and rockfish, frequently enjoyed as raw fish, are facing similar pressures.

The price of 1kg of flounder is around 22,000 won, which is over 6% more expensive than last year.

This is due to the aftermath of the heatwave.

The blow from two years ago, when nearly 30 million fish died in a single area in Gyeongnam, continues to linger, and this year, over 9 million fish have died nationwide due to high water temperature damage.

As a result, the government has stepped in.

A record-large scale of 20,000 tons, ranging from Alaska pollock, squid, mackerel, hairtail, and croaker to dried anchovies, will be released at prices up to 40% cheaper than market rates until September 27.

You may want to keep this in mind when doing your Chuseok shopping.

[Anchor]

What is this next topic about?

[Reporter]

Households in the lower 20% to 40% income bracket saw their food expenditure for the second quarter of this year surge by nearly 7% compared to last year.

This is more than twice the overall average.

While one might think that rising prices are hard on everyone, breaking down the statistics clearly reveals who is hurt more.

When examining South Korean households sorted by their earnings, how much of their total expenditure goes toward food shows that lower-income households allocate a larger proportion to food, and this proportion grew larger over the course of a year.

Conversely, the proportion actually decreased for the highest-income households.

Even with the same price increases, better-off households experience a lighter burden for food expenses in their household budgets, while struggling households face an even heavier burden.

This happens because basic grocery items that frequently appear on dining tables every day—such as rice, potatoes, green onions, soy sauce, and eggs—have risen particularly sharply.

Since people cannot stop eating, lower-income households end up bearing that burden entirely.

In particular, rice prices have been rising by double digits for four consecutive quarters.

The future looks even more concerning.

The burden could increase further due to the overlap of heatwaves and heavy rains in August and September, along with the Chuseok holiday.

[Anchor]

Lastly, you are talking about how gimbap restaurants have been disappearing lately.

[Reporter]

The number of snack bar businesses nationwide has been declining for 31 consecutive months.

As of June this year, the number dropped to the 47,000 range.

Franchise stores are also on a downward trend.

Even though the number of snack bar businesses is decreasing, the ironic part is that gimbap prices continue to rise.

The average price of a roll of gimbap in Seoul last month was 3,869 won.

This is a 6.8% increase from July of last year, surging much faster than other dining-out menu items.

Despite rising prices, why are restaurants struggling?

Because gimbap requires a lot of manual labor, from preparing ingredients to rolling, increases in the minimum wage directly affect prices.

The minimum wage is 10,320 won this year, and it will rise by 3.7% to 10,700 won next year.

Coupled with soaring ingredient prices for items like seaweed and spinach due to the heatwave, businesses are facing double and triple burdens.

This is not just the story of neighborhood snack bars.

Among brands, Gobongmin Gimbap-in, which had the largest number of stores, saw its count drop from 591 in 2020 to 383 this year.

Barda Kimseonsaeng decreased by more than 40%, going from 150 stores in 2021 to 87 this year.

Industry insiders explained, "We are suffering from a dual hardship as labor and ingredient costs rise, while alternative food choices like malatang and meal kits continue to increase."

Amid these difficulties, some brands are shifting to a method of displaying and selling pre-made gimbap like convenience stores.

Others have turned their eyes overseas entirely, opening branches in Taiwan, the United States, and Indonesia.
※ Please note: This article was translated by AI and may contain errors.