South Korea Living Costs Climb as Won Tops 1,520 and Egg Prices Jump 38.6%
Updated
Updated · 매일경제 · Jun 22
South Korea Living Costs Climb as Won Tops 1,520 and Egg Prices Jump 38.6%
2 articles · Updated · 매일경제 · Jun 22
Summary
South Korea’s inflation pressure is intensifying as an early heat wave lifts food prices, the won-dollar rate averages above 1,520 this month, and the Bank of Korea warns consumer prices will stay elevated for some time.
5,222 won for 10 premium eggs this month marked a 38.6% year-on-year jump and the first monthly average above 5,000 won; chicken rose 19.4%, green onions 18.4% and watermelon 8.9%.
1,530.9 won at Monday’s open left the currency near its highest level in 28 years, raising import costs for grain, feed, crude oil and other essentials in an economy heavily reliant on imported raw materials.
3.713 million workers—16.5% of wage earners—made more than 5 million won a month, a record share driven by semiconductor bonuses, and the central bank says concentrated performance pay can add 0.05 percentage point to inflation after about five months.
Low-income households face the sharpest squeeze because food takes a bigger share of their spending, leaving them exposed to what analysts describe as a triple hit from food inflation, exchange-rate-driven price rises and service-cost pressure.
Why are Koreans sending billions abroad, weakening their own currency and raising living costs at home?
As tech bonuses fuel inflation, is Korea's economic success punishing its most vulnerable citizens?
Will the Bank of Korea's plan to hike interest rates crash the economy in order to save it?
South Korea’s Cost-of-Living Crisis: Inflation, Currency Weakness, and the Struggle for Household Stability in 2026
Overview
South Korea is facing a sharp rise in living costs, putting immediate pressure on consumers as essential goods become more expensive. This crisis is driven by a combination of soaring food prices and a weakening Korean Won. The early and intense hot weather has triggered 'heatflation,' rapidly increasing demand for summer foods and pushing up prices. Staple foods like eggs and chicken have become more costly due to supply shortages, which stem from the culling of laying hens after a severe avian influenza outbreak and ongoing efforts to improve poultry conditions. These factors together are making daily life more challenging for South Korean households.