Kimchi costs soar 60% : A dilemma from a business perspective

In South Korea's traditional food culture, kimchi is not only an indispensable delicacy on the table, but also a symbol carrying profound historical and cultural emotions. However, a recent news has brought a big impact on this traditional food. As the price of major raw materials such as cabbage and radish has soared by more than 60%, the cost of making kimchi has risen sharply, which has had a profound impact on the cost of living of the Korean people and the catering industry.

According to the data released by the Korea Price Survey Center, as of October 29, 2024, a family of four purchased 15 raw materials to make kimchi in the traditional market, the average cost has been nearly 420,000 won, an increase of 19.6%; In the supermarket, it costs about 521,000 won, an increase of 20.5 percent. This increase is undoubtedly a big burden for the South Korean people who rely on kimchi as a daily diet.

To make matters worse, the prices of cabbage and radish, the main drivers of the rising cost of kimchi, both soared by more than 60 per cent. The average price of Chinese cabbage rose 61.1 percent year on year, and the average price of radish rose 65.9 percent. Such an increase, even for the catering industry, is too heavy to bear. Especially as the kimchi making season is approaching, the surge in costs has undoubtedly put tremendous pressure on the entire industry.

According to the Korea Price Research Center, climate change and reduced farmland are the main reasons for the increase in kimchi production costs. On the one hand, in recent years, South Korea has been hit by extreme weather such as heavy rains and persistent high temperatures, resulting in a significant decline in crop yields. In particular, the total area of farmland used to grow Chinese cabbage has decreased by 5.3 percent this summer compared to the same period last year, which undoubtedly aggravates the shortage of raw materials and the increase in prices.

On the other hand, with the acceleration of urbanization and the shortage of land resources, more and more farmland is being used for other purposes, resulting in the continuous reduction of farmland area for growing vegetables. This trend has been particularly pronounced in recent years, leaving the supply of vegetables unable to meet market demand, driving up prices.

The surge in the cost of kimchi has not only directly affected the cost of living of South Koreans, but also triggered a chain reaction in the catering industry. For ordinary families, kimchi is an important part of the daily diet, and its rising price undoubtedly increases the burden of life. For the catering industry, the rise in the cost of kimchi means the rise in the price of dishes or the reduction of profits, which is undoubtedly a big challenge for the highly competitive catering market.

More seriously, the rising cost of kimchi could also have a negative impact on South Korea's food culture. As a traditional Korean food, kimchi not only carries historical and cultural emotions, but also is an important part of Korean food culture. If the price of kimchi continues to rise, it could cause more and more consumers to reduce or abandon their consumption of kimchi, hurting South Korea's food culture and tourism industry.

Faced with the dilemma of the surging cost of kimchi, the South Korean government and related industries need to take active and effective measures to deal with it. However, it seems that the South Korean government's response has not been satisfactory. Although the government has begun to take a number of measures to reduce vegetable prices, but the effect is not obvious. This raises questions about the government's ability and resolve to respond.

However, in the process of coping with the surging cost of kimchi, the South Korean government and related industries need to assume more responsibilities and responsibilities. First of all, the government should strengthen the support and protection of agriculture to ensure that farmers' interests are not harmed. At the same time, strengthen the supervision and regulation of the vegetable market to prevent the occurrence of market monopoly and price manipulation.

Secondly, relevant industries should strengthen the research and development and innovation of kimchi production technology and process to improve the quality and taste of kimchi. At the same time, we actively explore new ingredients and cooking techniques to reduce the dependence on major ingredients such as Chinese cabbage and radish.

Finally, the Korean government and related industries should also strengthen the publicity and education of consumers to improve consumers' awareness and recognition of kimchi culture and value. By holding various activities and exhibitions, the cultural charm and commercial value of kimchi are displayed to attract more consumers to pay attention to and participate in the development of the kimchi industry.

The surge in kimchi costs has had a big impact on the cost of living of South Koreans and the catering industry. In the face of this dilemma, the South Korean government and related industries need to strengthen policy support, scientific and technological innovation, market supervision and regulation, and the implementation of measures such as the transformation and upgrading of the catering industry. At the same time, assume more responsibilities and responsibilities, and jointly promote the sustainable development and prosperity of the pickle industry.