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Consumer coupons not the cause for inflation: Finance ministry

Published: 04 Nov. 2025, 16:50 Updated: 04 Nov. 2025, 18:40

A shopper browses for groceries at a large supermarket in Seoul on Oct. 16. [NEWS1]

Consumer prices in Korea rose 2.4 percent in October from a year earlier — the fastest pace in 15 months — driven by higher costs for food and lodging. The government rejected claims that its consumer coupons contributed to the rise.

It was the second straight month that inflation stayed in the 2-percent range and the sharpest increase since July 2024, when prices climbed 2.6 percent, according to the Ministry of Data and Statistics on Tuesday.

Service prices led the overall rise as travel demand surged during the Chuseok holiday in October, which stretched to seven days for the first time since 2017. Costs for lodging and rental cars rose sharply. Prices for personal services excluding dining out — including overseas group tours, accommodations and beauty care — increased 3.6 percent.

Condominium rates jumped 26.4 percent from a year earlier. Passenger car rentals climbed 14.5 percent, and overseas group tour prices rose 12.2 percent. Dining-out prices grew 3 percent, down slightly from 3.4 percent in September, as franchise restaurants offered discounts.

Some critics argued that the government’s consumer coupons, intended to spur household spending, may have fueled inflation. The government dismissed the claim, saying the program had little effect. Officials said the coupons were limited to restaurants, supermarkets and groceries — not the services that drove the rise. The coupons could also only be used in the user’s registered region, excluding online or travel bookings.

"This rise in consumer prices is more attributable to weather conditions and increased holiday demand than the effect of consumer coupons," said Lim Hye-young, director of the price policy division at the Ministry of Economy and Finance.

Unusual weather conditions pushed up prices for agricultural, livestock and fishery products by 3.1 percent, adding 0.25 percentage points to the overall inflation rate. Livestock prices increased 5.3 percent and seafood rose 5.9 percent. Pork prices were up 6.1 percent, and mackerel jumped 11 percent.

Fruit prices rose 10.9 percent, led by apples, which surged 21.6 percent on year. Grains, including rice, rose 21.8 percent. In contrast, vegetable prices fell 14.1 percent, as supply improved. Prices for napa cabbage fell 34.5 percent, while radish prices dropped 40.5 percent.

Petroleum prices rose 4.8 percent, the biggest increase since February, when they climbed 6.3 percent. A drop in global oil prices last October combined with a weaker Korean won contributed to the rise.

To ease consumer burdens ahead of kimchi-making season, the government will launch its largest-ever discount program for agricultural, livestock and fishery products, totaling 50 billion won ($3.47 million).

Of that, 30 billion won will be used by Dec. 3 to offer up to 40 percent discounts on kimchi ingredients such as napa cabbage, radish and pork. The remaining 20 billion won will go toward seafood discounts of up to 50 percent and gift certificate refunds.

The government also aims to lower the distribution cost ratio for seafood — the share of logistics costs in retail prices — by 10 percent by 2030 as part of a broader plan to overhaul the distribution system.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM YEON-JOO [[email protected]]