Chosun Ilbo article: Korean Food Among World's Most Expensive

taken from: Chosun Ilbo, Sept.9, 2006 (Online edition)

Korean Food Among World's Most Expensive

The prices of major foods including beef, pork, milk and potatoes in Korea are the fifth highest among 34 leading economies. The country has become one of the world’s most expensive nations, with consumer prices soaring about 20 percent since 2000.

A comparative study on consumer price growth in 30 OECD member countries from 2000 to the first six months of 2006 showed Korea experiencing a growth rate of 20.3 percent on average, the sixth highest after Turkey, Hungary, Mexico and Spain. During the same period, consumer prices increased 17.8 percent in the U.S., 16.6 percent in Britain and 6 percent in Switzerland, while the rate fell 1.3 percent in Japan and 4.9 percent in Hong Kong. Food prices climbed 22.3 percent on average in Korea, the fifth highest among OECD countries and far higher than the averages of the OECD (16.3 percent) and EU (12.9 percent.)

According to statistics on wages and food prices in 34 major countries compiled by the International Labor Organization, beef cost US$48.09 per kg in Korea, the second most expensive following Japan with $76.52. The prices of apples and potatoes were the second highest among studied countries, and 77 percent and 110 percent higher than those in the U.S. Korean milk was twice as expensive as U.S. milk. Pork cost $13.1 per kg, the fourth highest after Norway and Switzerland. Rice was sold for $2.15 per kg, the eighth highest, and bread cost $1.66 per 500 g, the seventh highest.

When Korean consumer prices are set as the standard of 100, U.S. prices stood at 180 in 2000. But the figure dropped to 148 in 2002, 116 in 2005 and 110 in June 2006. In other words, U.S. consumer prices were 80 percent higher than in Korea in 2000 but only 10 percent higher this June. British and Swiss consumer prices were twice as high as Korea with 180 and 209 in 2000 but only at 126 and 159 June this year. In Japan, consumer prices were 1.38 times as expensive as in Korea in June, down from 2.64 times.

Jeon Young-jae, a senior researcher at the Samsung Economic Research Institute, said prices have been growing rapidly in Korea since prices of imported goods are still high compared to advanced nations due to the nation’s limited opening of the manufacturing goods and service markets. “What’s more, productivity has improved at a lower pace than in other developed countries."