Korean Job Discussion Forums

charlieDD · Joined: 16 Jun 2006 Location: Seoul, Korea

Have you noticed how things go up in price like some kind of national inflation day right after New Year's Day here in Korea?

What I've seen so far: My hairstylists raised what she charges for a hair cut from 20,000 won to 24,000 won; that's 20% inflation. Her shop printed up a whole new "menu" to reflect the new prices for the new year.

Burger King basic cheeseburger up 200 won, from 1,800 won to 2,000 per cheeseburger. That's 9%. I guess their prices are up across the board; I only occasionally have their cheeseburger, nothing else, so don't know about the other items.

A local Korean restaurant that I go to for lunch sometimes posted a new price list: basically a 15% rise in prices.

The local "sae tak" (laundry) wants 2,000 won to clean and press a "Y shirt" (dress shirt), compared to 1,600 just last week. That's 20%.

So, . . . is inflation in Korea actually around 15 - 20%, while the government reports it around 3 - 4 %?

On another note: Check out the info on the wrapper of a Snickers bar you buy in Korea these days: Made in China !

On another note: Toys R Us is coming here next year ( 2008 ). To be run by Lotte in a ten-year licensing deal. Think they'll have the toys of the world, or just end up being a Korean toy store? The ones I've visited in Thailand, Malaysia, and somewhere in the Middle East ( think it was Bahrain ) all had the full range of toys you'd expect to find stateside.

Return Jones · Posted: Fri Jan 05, 2007 4:30 am Post subject:

I agree. I've become acutely aware of the slight but constant pressure of inflation while living here in Korea as well as during my visits back home. I wanted to blame Homever for the recent price hikes in my usual consumer goods, but then I noticed Homeplus has done the same thing. Also, Outback raised the price of their cheese fries by 1000 won (10%), too. Hard-hitting, I know.

Seriously, though, that's just a tiny tiny example of what's happening across the board. I also maintain that true inflation is closer to 10-15% in Korea as well as in North America. Salaries for us teachers in Korea, however, remain basically the same. Evil or Very Mad

Ilsanman · Joined: 15 Aug 2003 Location: Bucheon, Korea

This is all true, I agree. But not the whole story.

Actually, some things are getting cheaper. The 5000 pizza places are popping up all over the place, and around here, 500 won an hour PC rooms are a growing trend.

I think inflation at 4% is about right.

tzechuk · Joined: 20 Dec 2004

Wow... where do you go for a hair cut??

I am a woman and my hair cut usually costs me like 10,000 won including a wash!

But then again I live out in the *sticks* of Daejeon!

charlieDD · Joined: 16 Jun 2006 Location: Seoul, Korea

charlieDD · Joined: 16 Jun 2006 Location: Seoul, Korea

Ilsanman · Joined: 15 Aug 2003 Location: Bucheon, Korea

I sed to get the blue club standard for 5,000 won. Until I married a hair dresser. Now it's on the house.

ChopChaeJoe · Joined: 05 Mar 2006 Location: Seoul

Commerce goes on at a frentic pace here, doubtlessly inflation would be a problem. I'v noticed it all along in the 14 months that I've been here.

captain kirk · Joined: 29 Jan 2003

'Dynamic Korea'

'Frantic Korea' Laughing

.

Unposter · Joined: 04 Jun 2006

I expect inflation to continue to go through the roof. If the value of your house can double overnight, you know other prices will continue.

Part of the problem is Korea, like most of East Asia, is a "savings" society. Everybody has large amounts of cash. You do not see that in countries like the U.S. Many people are in debt. So, in a country like Korea, if you raise prices, people just save less. In the U.S., if they raise prices, people buy less. They just don't have the money.

OK. It is not exactly real economic analysis but you get the idea.

It is price elasticity. If people really want something and the price goes up and they have the money to pay for it, they might grumble, but they will pay it.

My prediction is that Korea will continue to have high inflation until the savings rate is a more moderate 5-10%.

Ilsanman · Joined: 15 Aug 2003 Location: Bucheon, Korea

You are right and wrong.

A lot of families have several thousands of dollars in the bank, but others don't. 30% or so have severe credit problems that they can not pay back.

I don't think any prices will stop people from spending money here, though.

PimpofKorea · Posted: Sun Jan 07, 2007 3:01 am Post subject:

Looks like I will be upping my prices around 15% as well....I gotta eat too...