RISE IN SOJU PRICES

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In Korea, one of popular culinary combinations is grilled pork belly with soju. Pork prices have already jumped due to increasing demand during the pandemic. Soju prices will also go up starting Wednesday. They will rise by less than 100 won for the first time in three years. Although that doesn't seem like much, market watchers predict consumers will feel the brunt of the price hike.

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Last weekend ahead of soju prices rising. Sales of soju at large supermarkets increased up to 60 percent year on year. It is apparently because some people wanted to stockpile the liquor before the price goes up.

[Soundbite] Jeong Mi-jin(Seoul resident) : "Soju is a popular alcohol drink. It is not good that soju prices will go up in line with inflation. It is burdensome for ordinary, low-income earners."

Another concern is that soju might be more expensive at restaurants or bars. In 2019, the factory price of soju gained 65 won but most restaurants increased the price by 1,000 won. Now a bottle of soju will likely sell for 4,000 won or 5,000 won at restaurants. Market watchers predict a similar price hike. When the jump will happen remains to be seen. A pot of kimchi jjigae sells for 7,000 won on average in Seoul. A bottle of soju can now be as expensive as a main dish.

[Soundbite] Kim Joo-won(Hwaseong resident) : "Side dishes are expensive these days. Higher prices of alcoholic drinks will likely be burdensome. I will likely buy them at supermarkets at lower prices and enjoy them at home."

Small business owners say it is inevitable to raise prices of soju, since wholesale prices go up. However, it will also not be easy for them to raise soju prices as they are already struggling with a drop in customers amid the pandemic.

[Soundbite] Yoon Seung-won(Seafood Restaurant Owner) : "Due to the business curfew, we have fewer customers. We cannot recommend expensive dishes to customers. All business owners are like that. We will raise the price only as a last resort."

The tax on beer will also rise in two months. These soaring food and drink prices will inevitably place a heavier burden on consumers.