Credit: Public domain.
According to a June 15 report by the OECD, South Korea’s food and beverage price index was 47% higher than the OECD average, the highest among developed countries except for Switzerland. The data is adjusted relative to purchasing power, taking into account relative income and foreign exchange rates.
South Korea’s high food and beverage prices stem from low self-sufficiency and complex supply chains. In 2022, South Korea’s food self-sufficiency rate was 49.3%, among the lowest in the OECD. Food distribution costs accounted for 49.7% of the price of food in 2022, thanks to the weakening South Korean won and an arcane food wholesaler system that serves to drive up prices.
