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Exchange rate, costs take bite out of budgets as meal prices rise

Published: 25 Dec. 2025, 18:17 Updated: 25 Dec. 2025, 18:32

Prices are listed at a restaurant in Seoul on Dec. 25. [NEWS1]

Even a simple lunch near the office is becoming a stretch for many workers in Seoul, as rising exchange rates, higher food costs and mounting labor expenses push restaurant prices steadily higher.

"It's already difficult to go out for a meal at 10,000 won [$7] near the office, even light meals," said Kim, an office worker near City Hall Station.

Kim recently ordered a 5,000 won tuna gimbap (seaweed rice roll) and 4,500 won ramyeon at a franchise snack shop near the workplace, and paid exactly 10,000 won. At the shop, even the most basic gimbap costs 4,500 won, and the menu is increasingly filled with items priced above 10,000 won, such as cheese pork cutlet at 10,500 won.

With the recent sharp depreciation of the won expected to hit prices with a lag, concerns are growing that dining-out prices could rise further, in what's being referred to as "lunchflation."

The average prices of eight commonly consumed meals in Seoul last month rose by about 3 to 5 percent from a year earlier, according to a price information portal run by the Korea Consumer Agency. Gimbap saw the largest increase, with the average price per roll rising 5.7 percent, from 3,500 won in November last year to 3,700 won in November this year.

Kalguksu (knife-cut noodles) is also nearing the 10,000 won mark. The average price of a bowl rose 4.9 percent, from 9,385 won last year to 9,846 won. Common items have already surpassed 10,000 won on average, including samgyetang (chicken soup) at 18,000 won, naengmyeon (cold noodles) at 12,400 won and bibimbap at 11,600 won.

A shopper passes by the bread corner in a market in Seoul on Oct. 8. [YONHAP]

The restaurant industry says this year’s price hikes reflect accumulated cost pressures. Labor costs have risen with increases in the minimum wage, while fixed expenses such as rent and utilities have climbed at the same time. The exchange rate has also driven up the cost of imported ingredients, pushing overall costs to a breaking point.

The problem is that further inflationary factors remain. The price of eggs, essential both as a gimbap ingredient and a side dish, has continued to soar. According to livestock distribution data from the Korea Institute for Animal Products Quality Evaluation, the average consumer price of a pallet of extra-large 30 eggs stood at 7,010 won as of Tuesday, topping 7,000 won again after a month. This is 0.8 percent higher than a year earlier and 8.3 percent above the seasonal average.

Concerns are also growing that the spread of highly pathogenic avian influenza at hen farms this winter could disrupt egg supplies. During this winter season, the number of outbreaks at the farms has reached 11, more than double the figure from the same period last year.

A shopper looks around at a supermarket in Seoul on Sept. 1. [NEWS1]

The weak won is another factor fueling price instability. Despite the government’s all-out efforts to stabilize the exchange rate, the won remains at a level in the mid-1,450-per-dollar range.

Exchange rates affect prices with a lag. Experts say that amid persistently high inflation and a strong dollar, the cost-of-living burden felt by ordinary people is likely to continue for some time.

“The impact of a weaker won is typically reflected in prices after three to six months, so imported food prices are likely to rise first from early next year, putting upward pressure on inflation,” said Hur Joon-young, a professor of economics at Sogang University.

Import prices are already on the rise. The import price index rose 2.6 percent in November from October, marking the sharpest increase in one year and seven months. Import prices have risen for five consecutive months.

“Rising import prices feed into producer prices and then into consumer prices, heightening the cost of living,” said Kang Sung-jin, a professor of economics at Korea University. “Price increases in food and dining out will especially deepen the financial strain on households.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM YEON-JOO [[email protected]]