South Korean economic pressure from rising import costs

South Korean industries are facing significant economic pressure due to rising global costs for raw materials, energy, and logistics.

Manufacturing sectors, including automotive parts, machinery, metal, and textiles, are anticipating increased expenses driven by rising international oil prices, climbing KRW/USD exchange rates, and increased maritime shipping fees caused by instability in the Hormuz Strait. These cost increases are expected to impact shipments starting in October.

Simultaneously, the food industry is experiencing price hikes driven by surging global costs for wheat, sugar, and edible oils. Factors such as shipping disruptions in the Black Sea, extreme weather in Europe, and El Niño-related supply concerns have contributed to these spikes. Major companies like Haitai Confectionery and Woongjin Foods are implementing price increases and shrinkflation, following previous adjustments by companies such as CJ CheilJedang and Nongshim. Experts suggest that the combination of rising raw material costs, oil prices, and logistics will continue to pressure consumer prices.