Gov't to look into corporate 'shrinkflation' practices amid consumer outcry

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Gov't to look into corporate 'shrinkflation' practices amid consumer outcry

Published: 17 Nov. 2023, 10:27

SEO JI-EUN
seo.jieun1@joongang.co.kr

A customer browses products inside a grocery store in downtown Seoul on Tuesday. [NEWS1]

The government will investigate cases where companies reportedly reduced product quantities while keeping prices unchanged, without informing consumers, in response to mounting public complaints, particularly amid concerns over high inflation.

Gov't intervenes as 'shrinkflation' leaves sour taste for Korean consumers

First Vice Finance Minister Kim Byoung-hwan announced the plan during a weekly vice-ministerial meeting on inflation Friday, saying that those "shrinkflation" practices "are far from fair and the government takes the matter very seriously."

Recently, some food companies have been criticized for downsizing the size or quantity of their products while keeping prices unchanged without any notice, sparking public outcry over forcing consumers to bear the brunt of rising production expenses.

The government will carry out a survey of major daily items to identify cases of such practice by the end of this month and set up a center to receive reports from consumers.

Based on the results, the government plans to develop detailed measures to boost consumers' right to know, Kim said.

Inflation has gathered pace in Korea recently despite a gradual downtrend this year due to volatile global oil prices and rising prices of fresh food items amid unfavorable weather conditions.

Consumer prices, a key gauge of inflation, fell to a yearly low of 2.3 percent on-year in July but rose to 3.4 percent in August, 3.7 percent in September and 3.8 percent last month, according to government data.

The Finance Ministry has said that inflationary pressure is forecast to be eased at a slower pace and vowed all-out efforts to bring prices under control.

BY SEO JI-EUN, YONHAP [seo.jieun1@joongang.co.kr]