The fight against soaring food prices has become a top economic task for the newly launched Lee Jae-myung administration. —AP
JUST days into his presidency, South Korean leader Lee Jae-myung found himself facing an unlikely but potent symbol of economic distress: the cost of ramyeon. “Is it true,” he asked during an emergency economic meeting on Monday, “that one packet now costs 2,000 won (RM6.20)?”
The figure was exaggerated, but the sentiment behind the question struck a nerve. For many South Koreans, the supermarket has become the front line in a broader struggle over living costs and public trust in government.
Consumer prices have begun to cool. Inflation fell to 1.9% in May, marking the first dip below 2 % in five months. Yet the statistical relief has not translated into real relief at home. At dinner tables and market stalls, the strain remains unmistakable.
Processed food prices have climbed 4.1% over the past year, while everyday staples such as coffee, chocolate and vinegar have risen more than 5% in just six months. Livestock products – beef, pork and chicken – are up more than 6%.
For many families, the shift is no longer from one brand to another, but from one food group to another. Fresh meat is increasingly being replaced by canned fish.
Multiple forces are driving the squeeze: a weakened won, volatile global commodity markets and ongoing geopolitical disruptions. But the sharpest price hikes aligned with a period of political turmoil, including former president Yoon Suk Yeol’s failed attempt to impose martial law, his impeachment and the early election held on June 3.
During that window of uncertainty, more than 60 companies raised prices. Whether or not that amounts to collusion, it stands as a clear case of opportunistic inflation.
President Lee’s concern is widely shared. A recent survey by the Federation of Korean Industries found that 6 in 10 Koreans identified price stability as their top economic concern. In response, the ruling Democratic Party of Korea has pledged to create a price stabilisation task force, backing the president’s call for swift action.
But identifying the problem is only the first step. Solving it requires precision. Heavy-handed interventions often backfire. When governments suppress prices too aggressively, they risk triggering secondary shocks.
Companies unable to absorb legitimate cost increases may cut quality, pull products or – once controls are lifted – raise prices even higher. The result is not stability, but deeper volatility.
A more sustainable path lies in focused, disciplined policymaking. Authorities should monitor for collusion and penalise unjustified markups. Expanding supply in vulnerable sectors, diversifying import sources and improving domestic logistics would address root causes more effectively than across-the-board discounts.
There is also the matter of perception. Inflation in household essentials affects not just spending power, but confidence. When consumers feel poorer, they spend less, dragging down demand and stalling recovery.
Targeted fiscal measures, such as subsidies, tax relief and temporary import easing, can help households without distorting the broader economy. But these tools require technical skill, political will and restraint.
The Lee administration appears to understand the stakes. Its urgency is appropriate. However, success will be judged not by numbers alone, but by whether Korean families regain the ability to plan, save and live without constant anxiety over the next grocery bill.
In this context, the price of ramyeon is more than a passing concern. It has become a bellwether – not only of economic conditions, but of trust in government.
The dinner table is where policy meets daily life. And if President Lee hopes to deliver on his promise of economic recovery, he must begin by ensuring that Korean families can afford to gather around one. — The Korea Herald/ANN
