While South Koreans consistently voice concern about the rising cost of university tuition, housing, ramen, and cabbage, nothing may be more sensitive than the price of soju. Sold for 3000 won (2.8 USD) in a majority of restaurants and bars, the green bottles seemed immune to the rising cost of living in South Korea. That is, until the beginning of this year, when distillers reacted to the rising cost of ingredients by raising prices, starting a cascade that seems like it will end with a new normal, 4000 won (3.75 USD) a bottle soju.
Otherwise dry economic data about increases in wholesale costs vs. production cost have become fuel for accusations of greed by restaurant owners and above all, incompetence in the Lee Myung Bak government.
From Money Today:
‘Lunchtime Concerns’ Food Prices Skyrocket, Soju to Hit 4000 won
Located in the Moonbae district of Yongsan, the restaurant “Yukkal” is well known for its kalguksu, which it serves with a steaming bowl of yukgaejang. Around lunchtime, there is a line of customers out the door. In recent days, a single sheet of paper appeared on the left side of the restaurant’s menu, reading “due to an increase in the price of ingredients, starting on January 1st, Yukkal will increase the price of its signature dish from 7000 won to 8000 won, and the price of kalguksu from 5000 won to 6000 won.”
Elsewhere in Seoul, on Seo-somun Street, Hanseong, a restaurant famous for its chittlins, announced that it would raise its price for a bottle of soju to 4000 won. Hanseong, along with the twenty other restaurants in the Seo-somun business association, decided to collectively increase their price for a bottle of soju from 3000 won to 4000 won.
According to sources within the restaurant industry, starting on the 18th of this month, increases in the price of flour and soju will lead to secondary price increases at establishments in Seoul.
Soju now at 4000 won a bottle, menu prices continue to rise
Increases in restaurant prices are only beginning, further jumps are expected in the near future. In particular, there are signs that the largest increases will happen once the Lunar New Year holiday ends. At a large restaurant in Seoul’s central Gwanghwamun district, an employee said, “we are carefully watching for any resistance to the new prices from customers but when the New Year holiday ends, we have no choice but to increase the prices on our menus.”
According to a source in the liquor industry, “Chamisul has already increased its wholesale price, but since prices for Chum-Churum have not increased, restaurant owners have been reluctant to increase liquor prices…However, with Chum-Churum increasing prices on the 19th, most restaurant owners will finally increase their menu prices.”
Business associations in some districts are choosing to collectively increase their soju prices, such as the Mutual Aid Society of Seoul’s Guro District. In order to minimize objections from customers, the one hundred member restaurants will wait until after the New Year to increase liquor prices.
Price increase magnified, consumers shocked
All of these price increases are increasing the burden on average citizens. One reason is that the increase in menu prices is far outpacing the actual increase in wholesale prices. For example, the cost to manufacture a bottle of soju has increased by 72.8 won per bottle, or 8.1%. Increases in the cost of production means that the price for restaurant wholesalers has risen by 100 won to an average of 1200 won per bottle. However, the 1000 won price increase that ultimately appears on restaurant menus is a full 33% increase.
“Food and alcohol prices on the menu are rising much faster than the real increases to the restaurant. It’s costing so much to eat out these days…It’s getting harder to make my decision of where to eat lunch, especially since my salary never seems to increase,” said Im Cheol-woo, an office worker on Seoul’s Yeoui Island.
Comments from Daum:
If the wholesale price only rose 10% I would have expected the cost of a bottle to increase by 100 won or 200 won at most, but it looks like it has been used as an excuse to raise soju prices by a full 1000 won, what the hell
Those chiselers are getting out of hand with their price increases. In the future, whenever I would have had three bottles of soju I will only drink two. If I would have drunk two bottles of soju I will only drink one! To the restaurant and bar owners reading this, if you shamelessly increase the prices in your business, you will be ruined! Listen closely! Your customers will disappear haha
What is the minimum wage supposed to be these days, 4850 won? ke ke An hour’s pay wouldn’t even pay for a bowl of noodles or seolleongtang. In this country, the only meal you could buy is kimbap and a bowl of ramen at Kimbap Heaven… or something off the McDonald’s lunch menu…shit, making minimum wage you can’t even pay for a decent meal in this country…
Soju for 4000 won a bottle? 5000 won for a bowl of kalguksu? What the hell, my income never goes up but the cost of living seems to constantly jump higher and higher
Just five years ago, during the presidency of Roh Moo-hyun, it seemed like the price of lunch was just 5000 won. Now it’s 7000 won, 8000 won. It sure is a good thing we picked a president who was so good for our economy…
I have been keeping track of my family expenses, so I know that during the presidency of Kim Dae-jung, the average lunch cost was 3000-3500 won. Under Roh Moo-hyun it was 4000 won. After five years under President Lee Myung-bak, it is now 6000-7000 won. An “economic-focused” president seems to be ruining his people.
I don’t know. It looks like it’s everyone for themselves after the election…
The reality of Lee Myung-bak’s “747” campaign promise: 7000 won for a meal, 4000 won for soju, 7000 won for lo mein
Get rid of them and just eat your meals at home
So the cost of producing a bottle of soju goes up by 100 won and the restaurant charges an extra 1000 won!!!!!!!!! What a bunch of thieves. Let’s take this seriously, brace ourselves, and refuse to go to restaurants for one month. Only then will restaurant owners lower the price of soju.
Even if the cost of ingredients plummets, those chiselers refuse to drop prices by even a tiny amount. Rotten thieves
These days the only way to survive is by drinking water, everyone is raising prices
The government is putting its citizens on a diet.. Nowhere else would you see something like this! Only here would the government manage our waistlines
Shit, now I’m scared to drink soju…
The only way to answer this is by buying 10,000 won of meat at the butcher shop, a bottle of soju at the corner store, and going home!!
Thank you.. keep raising prices like this until soju hits 10,000 won a bottle, I think I will be able to quit drinking after all
His Royal Highness is just looking after our health, making us quit drinking and helping use to avoid restaurants that use lots of MSG
In America, 4000 won buys six cans of Asahi. This is one of the reasons why the standard of living is low in Korea.
Here I am at age 40 and everything seems to be increasing except for my salary…And yet people are still surviving and buying bigger houses than before, new cars, and traveling abroad…
Everyone pack their own lunch from now on. Let’s show them how tough things have gotten!!! Starve them out