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By Jane Han
Staff Reporter
Kim Min-ja runs a noodle eatery in Namdaemun Market's famous ``kalguksu'' (knife-cut noodles) street. She said prices of all menu items ― mostly made out of flour ― were recently fixed up by 500 won, more so by peer pressure than rising costs.
``The whole street was resetting the price from 3,500 won to 4,000 won, so you're pretty much left with no choice,'' said Kim, who has for the past 15 years been in business on the street lined up with 20 some similar joints.
The world's biggest commodity crops, such as wheat, corn and soybean, have been selling at record highs since last year, pushing up flour prices by about 65 percent. A 20-kilogram pack of flour for restaurant-use went from 13,500 won to 22,166 won, according to market data.
Kim says although rising costs leave less profit for businesses, the sudden price change can easily repel customers.
``I'd rather pick lower profit over fewer customers,'' she said, adding that many restaurant owners seem to use this opportunity to raise prices a bit more than needed.
A National Statistical Office data showed last week that Chinese restaurants have been charging eaters 9.2 percent more than they did in December due to flour shortages.
Analysts say owners not only used the opportunity to reset ``jjajangmyeon'' (black bean paste noodle) prices but also other dishes unrelated to flour.
Lim Ok-hee, who runs a Chinese restaurant in Myeongdong, central Seoul, said a bowl of her jjajangmyeon edged up from 2,500 won to 3,500 won, while other dishes like ``tangsuyuk'' (sweet-sour pork) saw similar changes.
She said many small restaurants in Myeong-dong, which is dense with cheap eateries, are seeing this as a good excuse to modify their prices.
``Ramyeon'' (instant noodles) used to cost 1,500 won but 2,000 won is becoming the new market standard.
Owners say it's because of the rise in costs, but ramyeon prices, in fact, only went up by 100 won.
Businesses should be more honest with their price modifications, says the Korea Consumer Agency, adding that today's consumers are smart, so ``They won't take such unfair practices for long.''
jhan@koreatimes.co.kr |
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