"It's So Expensive, I Have to Put Things Back"... Wallets Empty After Grocery Shopping, Korea's Food Prices Rank 2nd in OECD

South Korea’s Grocery Prices Remain Among the Highest for Three Years; Switzerland Tops the List

High Oil Prices and Exchange Rates Drive Up Food and Dining Costs

Grocery prices in South Korea are now the second highest among OECD member countries when adjusted for purchasing power. While the overall consumer price level in South Korea is below the OECD average, grocery prices have remained among the highest for three consecutive years, continuing to burden household shopping budgets.

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46% Higher Than the OECD Average... Top Tier for Three Consecutive Years

According to the latest OECD purchasing power parity (PPP)-based price statistics released on July 9, South Korea’s price index for food and non-alcoholic beverages in 2024 stands at 146, which is 46% higher than the OECD average of 100.

Purchasing power parity (PPP) is an indicator that compares real price levels by taking into account price levels and purchasing power across different countries. Among the 38 OECD member states, South Korea ranked second only to Switzerland, which recorded an index of 147.

Even compared with other major advanced economies, South Korea’s grocery prices are high. Japan’s index was 121, the United States 107, while major European countries such as France (100), Germany (95.2), and the United Kingdom (91.4) were at or below the OECD average.

For the past three years, South Korea’s food price index has consistently remained at the top among OECD nations. In 2022, South Korea was tied for second with an index of 152, just behind Israel (155). In 2023, it was the highest among all OECD members at 150. Although the index dropped slightly to 146 last year, South Korea once again ranked second, following Switzerland.

In addition to groceries, the price index for clothing and footwear was 115, and for education it was 108—both above the OECD average.

In contrast, the household final consumption (HFC) price index, which covers overall consumption, stood at 78, below the OECD average and placing South Korea 23rd among the 38 member countries. This is attributed to the relatively lower prices in key service sectors such as housing (54.7), transportation (75.3), leisure and culture (80.7), and food and accommodation (93.6), all of which remain below the OECD average.

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High Exchange Rates and Oil Prices Push Food Prices Higher... Restaurant Prices Also Climb

The high prices of groceries are directly reflected in the cost of daily meals as experienced by consumers.

According to the Ministry of Data and Statistics on July 9, the price of eggs in the first half of this year rose by 16.9% compared to the same period last year. Prices also saw double-digit increases for rice (15.1%), ginseng (14.6%), mangoes (13.1%), and potatoes (10.5%). These rises are attributed to higher international oil prices due to instability in the Middle East, as well as a prolonged period of high exchange rates, which together have pushed up costs for raw materials, logistics, and agricultural production.

Meanwhile, restaurant prices have also continued to rise. According to the ‘True Price’ data from the Korea Consumer Agency, the average price of pork belly (200g serving) in Seoul surpassed 21,000 won for the first time this year, while major restaurant dishes such as samgyetang (18,154 won), naengmyeon (12,615 won), bibimbap (11,769 won), and kalguksu (10,038 won) all now exceed 10,000 won.

This content was produced with the assistance of AI translation services.