The Nation Grapples with Rising Dining Costs as 'Lunchflation' Persists | Be Korea-savvy

The Nation Grapples with Rising Dining Costs as ‘Lunchflation’ Persists


The photo shows a menu board installed in front of a restaurant in Myeong-dong, Jung-gu, Seoul. (Yonhap)

The photo shows a menu board installed in front of a restaurant in Myeong-dong, Jung-gu, Seoul. (Yonhap)

SEOUL, Jan. 14 (Korea Bizwire) —  South Korea continues to face mounting dining costs for the third consecutive year as high inflation, currency volatility, and rising interest rates drive food prices upward.

From popular dining options to workplace cafeterias and convenience store meals, prices have surged, intensifying the so-called ‘lunchflation’ phenomenon.

According to data from Statistics Korea released on January 13, 2025, the dining-out Consumer Price Index (CPI) climbed 3.1% in 2024 to 121.01, outpacing the overall CPI increase of 2.3%.

Though this growth rate has slowed from the 6.0% recorded in 2023, it marks the third straight year of dining costs rising above 3% and continues a 12-year trend of outpacing the general inflation rate.

Among menu items, lunchbox prices led the increase with a 5.9% rise, followed by tteokbokki (5.8%), hamburgers (5.4%), and gimbap (5.3%). Staple comfort foods like kalguksu and fried chicken each rose by 4.8%, while naengmyeon and pho climbed 4.2% and 4.1%, respectively, reflecting steeper price hikes for budget-friendly meals.

Workplace cafeterias saw the sharpest price jump, surging 6.9% in 2024—the highest increase since records began in 2001. This marks the fourth consecutive year of price hikes exceeding 4%, straining workers seeking affordable lunch options.

Convenience store meals, once considered cost-effective, have also become more expensive. Convenience store lunchboxes, first tracked in consumer price statistics in 2019, saw a 4.9% increase in 2024 following a 5.2% rise in 2023. Similarly, triangular gimbap prices rose 3.7% in 2024, continuing a steady upward trend.

Analysts link this persistent lunchflation to rising agricultural and food costs driven by climate change and a weakening won. In 2024, agricultural, livestock, and fisheries products saw a 5.9% price surge—double the overall CPI increase.

Notably, fruit prices soared 16.9%, while vegetable and grain prices rose 8.1% and 3.3%, respectively. Livestock products remained relatively stable with a modest 0.7% increase.

As more office workers struggle with "lunchflation" (lunch price inflation) due to high prices, many are turning to more affordable options like gimbap or sandwiches from nearby large supermarkets instead of dining at restaurants. (Yonhap)

As more office workers struggle with “lunchflation” (lunch price inflation) due to high prices, many are turning to more affordable options like gimbap or sandwiches from nearby large supermarkets instead of dining at restaurants. (Yonhap)

Looking ahead, experts warn that lunchflation will likely persist in 2025. Global economic uncertainties, including geopolitical instability and a sharp rise in the won-dollar exchange rate, are expected to drive up the costs of imported ingredients.

Jeong Ji-yeon, Secretary General of the Korea Consumer Federation, stated, “The factors influencing food prices, such as climate change and exchange rates, are becoming increasingly complex. This trend suggests that food prices will continue to rise this year.”

In response to rising consumer sensitivity to food prices, South Korea’s retail industry is intensifying competition in the value-for-money meal sector.

E-Land’s Kim’s Club has gained popularity with its ‘Deli by Ashley’ line—a budget-friendly home meal replacement (HMR) version of its Ashley Queens buffet, priced at 3,990 won. Since its launch in April 2024, over 200 products have sold more than three million units.

Major retailers are also responding. Emart and Lotte Mart have expanded their affordable HMR offerings with the ‘Amazing Deli’ and ‘Yorihada’ brands. Convenience stores are joining the competition as well.

Emart24 introduced ultra-low-cost gimbap for 1,900 won—45% cheaper than average—and a bibimbap meal for 3,600 won, aiming to capture the budget-friendly food market.

As dining costs continue to climb, South Korean consumers and businesses alike are navigating an increasingly challenging food landscape in 2025.

Lina Jang (linajang@koreabizwire.com)

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