South Korea’s Food and Beverage Prices Rank Among Highest in OECD for Three Consecutive Years

South Korea's price levels for food and non-alcoholic beverages have remained among the highest in the OECD for three consecutive years, significantly impacting real purchasing power. According to 2024 OECD Purchasing Power Assessment statistics, Korea's food price index stands at 146, which is 46% higher than the organization's average. This trend highlights a persistent challenge for the domestic Food & Beverage sector, as essential grocery costs remain elevated compared to both the OECD average and other major global economies.

Data from Yonhap News and the OECD’s Purchasing Power Assessment (PPP) price level statistics reveal that South Korea’s price level for food and non-alcoholic beverages reached 146 as of 2024. This metric, which reflects real purchasing power, indicates that Korean food prices are 46% higher than the OECD average of 100. Korea currently ranks second among 38 member countries, trailing only Switzerland, which has a score of 147, and sitting significantly higher than other major economies such as the United States at 107 and Japan at 121.

The report highlights a sustained period of high costs, as Korea’s food price levels have remained at the top of the OECD rankings for three consecutive years. In 2022, Korea tied for second place with Switzerland with a score of 152, following Israel at 155. In 2023, Korea’s index reached 150, surpassing Switzerland to become the most expensive member for food. Although the 2024 figure of 146 shows a slight numerical decline, the gap remains wide compared to major European nations like France at 100, Germany at 95.2, and the United Kingdom at 91.4.

Interestingly, the high cost of food and beverages stands in contrast to Korea’s overall household final consumption (HFC) price index, which covers all consumer items and sits at 78, well below the OECD average. While essential categories like clothing and shoes (115) and education (108) exceed the average, other sectors remain relatively affordable. These include housing at 54.7, transportation at 75.3, and leisure and culture at 80.7. Even the food and lodging category, which includes service-based dining, was lower at 93.6, suggesting that the primary inflationary pressure in the sector is driven by the cost of the food and beverage products themselves.