Costs of imported refrigerants spike with summer heat

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Costs of imported refrigerants spike with summer heat

Published: 08 Jul. 2025, 11:06 Updated: 08 Jul. 2025, 16:54

Audio report: written by reporters, read by AI

Citizens walk across a hot Yeouido neighborhood in western Seoul on July 7 when Seoul saw the first heat wave warning of the year. [KIM KYOUNG-ROK]

As summer heat intensifies, prices of refrigerants — critical for air conditioners and refrigerators — are rising sharply, prompting service providers to hike rates. Making matters worse is that Korea is heavily dependent on imported refrigerants from China, which is suffering from even hotter temperatures.

An example is an air conditioner refrigerant charging company in Anyang, Gyeonggi, that raised its standard call-out fee for residential units from the usual 60,000 won to 70,000 won ($44 to $51) to between 100,000 won and 110,000 won this summer.

“A 20-kilogram [44-pound] refrigerant cylinder now retails for nearly 200,000 won, about three times last year’s price,” said the business owner. “We had to factor in both material costs and labor.”

The spike comes as Seoul issued its first heat wave warning of the year on Monday, signaling the start of full-fledged summer conditions. The surge in refrigerant prices is driven primarily by rising local prices in China, Korea’s main supplier.

According to chemical distribution industry data, the Chinese market price for R-134a, a common automotive refrigerant, increased by 9 percent from 44,438 yuan per ton ($6,200) in January to 48,438 yuan in May. The price of R-410a, most commonly used in household air conditioners, rose by 11.1 percent over the same period, from 43,875 yuan to 48,750 yuan per ton.

“There is no fixed international market price for refrigerants, and if prices rise in China, the import price rises with it,” an industry source explained.

Higher temperatures have driven up demand in China while raising production costs. A Chinese industrial consultancy reported last month that air conditioner production in June was expected to reach 20.53 million units, an 11.6 percent increase from a year earlier. Domestic sales in China were projected to jump by 29.3 percent. Growing demand for electric vehicles is also contributing to the surge in refrigerant usage.

“Plants producing popular refrigerants like R-134a are operating at maximum capacity,” the report stated, “but widespread supply shortages are paralyzing the market.”

Citizens look through refrigerators and washing machines displayed at a retail market in Seoul on June 19. [NEWS1]

While some Korean companies are capable of developing refrigerants, they currently focus on importing finished products due to Chinese firms’ price competitiveness. Efforts to develop environmentally friendly alternatives face high patent barriers set by global chemical giants. According to data from the Ministry of Trade, Industry and Energy, 99 percent of Korea’s HFC-134a consumption last year relied on imports.

A domestic importer said rising refrigerant prices will not immediately affect appliance retail prices, but households and vehicle owners replenishing their refrigerants during the fall moving season may feel the impact.

“Because demand is relatively fixed in Korea. We don’t keep reserves,” the importer said. “Refrigerants are imported via tanker trucks and distributed directly to dehumidifier or air conditioner manufacturers.”

There are currently no disruptions in supply, but Korea’s heavy dependence on China leaves it vulnerable to market volatility. China’s recent efforts to exert influence over global supply chains, such as through export controls on rare earth elements, pose an additional risk.

“When more than 70 percent to 80 percent of imports depend on a single country, Korea is inevitably impacted by that country’s domestic situation, as we saw with the urea solution crisis,” said Gang Cheon-gu, a visiting professor at Inha University’s Graduate School of Manufacturing Innovation. “Korea needs to diversify its import sources, especially to other Asian nations.”

A Ministry of Economy and Finance official said the government will review supply chain vulnerabilities for high-dependence items like refrigerants. Korea currently offers subsidies to companies that diversify away from Chinese suppliers or invest in stockpiling, helping offset cost gaps.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY IM SOUNG-BIN [[email protected]]