Weekends away become luxury for Korean consumers as prices soar

Crowds at Yeouido Cherry Blossom Road in western Seoul on April 4 [NEWS1]

The rising prices of virtually everything is making a short family vacation a luxury for many Koreans.

A 31-year-old resident of Hanam, surnamed Min, spent a total of 660,000 won ($500) for a two-day family trip to Samcheok, Gangwon, last month with his wife and two-year-old daughter.

The family’s expenses included 74,000 won at a restaurant in Donghae and 40,000 won at Gyeongpo Aquarium in Gangneung. He also spent 64,000 won on fresh seafood from a raw fish restaurant and four cans of beer from a convenience store.

The next day, Min paid 70,000 won for a breakfast buffet for two adults, and spent 32,000 won on two drinks and a scone at a nearby cafe.

The total cost for accommodation as well as for gasoline and toll fees for a round-trip travel of 500 kilometers (311 miles) amounted to approximately 100,000 won.

“Last year, we were unable to travel much as our child was too young, so we decided to take a short trip this spring,” Min said.

“But the trip cost much more than our honeymoon although it wasn’t a trip Jeju Island or abroad,” he complained.

After checking online, Min discovered that the restaurant in Donghae had raised its menu prices by 1,000 to 2,000 won compared to last year, the raw fish restaurant increased prices by 10,000 won, and the buffet breakfast increased by 3,000 won per person. Additionally, the entrance fee to the aquarium increased by 2,000 won per adult.

The cost of accommodation is estimated to have gone up by 60,000 to 70,000 won compared to the previous year, although it varies depending on the method of reservation and timing.

According to Statistics Korea, the consumer price index in March rose by 4.2 percent compared to the same month last year, recording the lowest year-on-year increase in a year.

The steep increase in travel expenses, however, has not subsided.

While the overall consumer price index has slowed down as petroleum prices have fallen, the costs for consumers who are traveling or preparing for spring trips are still burdensome.

By category, the cost of dining out last month rose by 7.4 percent compared to the same month last year, which is higher than the overall consumer price growth of 4.2 percent.

The prices of popular dishes such as pizza, tonkatsu and samgyeopsal (pork belly) have continued to rise by 12 percent, 10 percent and 8.6 percent each.

The price of jajangmyeon (black bean noodles) increased by 9 percent during the same period.

According to the Korea Price Information Corp., the average price of jajangmyeon in the country has reached 6,361 won this year. When the dish was first included in price surveys back in 1970, its average cost was just 100 won. Over the past 50 years, the price has surged by more than 63 times, with a particularly steep increase seen in the last five years. In comparison to the price in 2018 (5,011 won), the current cost of jajangmyeon has risen by 26.9 percent.

Major franchise restaurants such as McDonald's, Lotteria, and Burger King have raised their average product prices since the beginning of this year, while Kyochon F&B increased the prices of its main menu items by 3,000 won on April 3.

The prices of bakery items, which are one of the representative snacks of spring, are also on the rise. Tous Les Jours has increased the prices of 50 items by an average of 7.3 percent since April 8, and Paris Baguette raised the average price of 95 products by 6.6 percent in February.

The trend of rising prices in the food and beverage industry is reflected in the tourism and leisure sectors as well.

Everland, Korea's largest theme park, has raised its annual and daily pass prices by up to 15.4 percent last month. This comes after a price increase of between 10,000 and 40,000 won for annual passes in March 2020 amid the Covid-19 pandemic. A family of four visiting the park will now have to spend around 270,000 won to just enter.

Statistics Korea data in March showed that amusement park admission fees increased by 7.3 percent compared to the same month last year. During the same period, hotel accommodation fees rose by 13.7 percent, while fees for sporting events tickets went up by 9.1 percent and movie tickets by 7.4 percent.

The lifting of mandatory mask-wearing and the early blooming of cherry blossoms are fueling a rise in leisure and tourism prices like never before, causing concern among experts about a potential negative impact on the country’s tourism sector.

“With domestic prices on the rise, there is a concern that people may choose to travel overseas as Japanese people did in the past,” said Kang Sung-jin, an economics professor at Korea University. “I am worried that such inflation could trigger people to travel overseas, and ultimately lead to a decrease in domestic consumption."

BY JEONG JIN-HO [seo.jieun1@joongang.co.kr]