South Korea Cracks Down on ‘Shrinkflation’ as Chicken Prices Rise

Seoul – South Korea is taking a stand against a quietly spreading economic phenomenon: shrinkflation. The government announced sweeping new measures Tuesday aimed at curbing the practice of companies reducing product sizes while maintaining prices, a tactic increasingly employed amidst global inflationary pressures. The initial focus? The nation’s beloved fried chicken.

The move comes after public outcry erupted over Kyochon 1991, one of South Korea’s largest fried chicken franchises, which recently reduced the portion size of its boneless chicken offerings by 30% without a corresponding price decrease. This sparked a national conversation about deceptive practices and the eroding purchasing power of consumers. It’s a story that resonates far beyond the Korean peninsula, as similar tactics are being observed in markets worldwide.

A Nation Obsessed with Chicken

Fried chicken isn’t just food in South Korea; it’s a cultural touchstone. Often enjoyed with soju (a traditional Korean distilled beverage), “chimaek” – chicken and maekju (beer) – is a national pastime. The industry is massive, with over 12,560 franchise stores representing the ten leading brands – including bhc chicken, Genesis BBQ, Kyochon, Cheogajip, and Goobne – dominating the landscape. This makes the issue of shrinkflation particularly sensitive.

“For many Koreans, fried chicken is more than just a meal; it’s a social experience, a comfort food,” explains Lee Hana, a Seoul-based economist. “To see portion sizes shrinking while prices remain the same feels like a direct hit to their lifestyle and a loss of value.”

New Regulations: Weighing In on Transparency

Starting December 15th, the ten major fried chicken brands will be legally required to display the weight of their pre-cooked chicken alongside the price on menus. This is a significant step towards greater transparency, addressing a key consumer complaint. Currently, South Korea lacks a mandatory weight-labeling system for the food service sector, leaving consumers largely in the dark about the quantity they are receiving.

The government isn’t stopping at chicken. Stricter penalties are also being introduced for processed food manufacturers who fail to inform consumers about reductions in product size. Previously, the Ministry of Food and Drug Safety could only issue correction orders. Now, they will have the authority to impose production suspension orders, a far more impactful deterrent.

A Global Trend, Local Response

South Korea’s response to shrinkflation is part of a broader global trend. From chocolate bars in the UK to cereal boxes in the US, companies are increasingly resorting to subtle reductions in product size or quality to offset rising input costs without alienating price-sensitive consumers. According to the OECD, global food price inflation peaked at nearly 16% in 2022, putting immense pressure on manufacturers.

This pressure isn’t easing. The World Bank estimates that global food prices remain 15% higher than pre-pandemic levels, despite some recent easing. This creates a fertile ground for shrinkflation to flourish.

Beyond Chicken: The Broader Implications

The South Korean government’s actions signal a growing awareness of the need to protect consumers from deceptive practices in an era of persistent inflation. While the initial focus is on fried chicken, the implications extend far beyond. This case could set a precedent for other countries grappling with similar issues, potentially leading to increased regulation and greater transparency in the food industry worldwide.

“This isn’t just about chicken; it’s about trust,” says Park Ji-hoon, a consumer rights advocate in Seoul. “Consumers need to know they are getting what they pay for. This new regulation is a step in the right direction, but it’s crucial that it’s effectively enforced and expanded to cover a wider range of products.”

The situation in South Korea highlights a critical challenge facing economies globally: how to balance the needs of businesses facing rising costs with the rights of consumers to fair and transparent pricing. As inflation continues to loom large, expect to see more governments scrutinizing the practices of companies and taking steps to protect their citizens from the hidden costs of shrinkflation.