High exchange rate, Middle East conflict drive up seafood and poultry prices; chicken legs and breast up 24–40% in a year; industry scrambles to secure supply amid fears of further increases

A shopper browses the seafood section at a hypermarket in Seoul. [Yonhap]
A shopper browses the seafood section at a hypermarket in Seoul. [Yonhap]

Prices for imported food are surging as a weak won and rising logistics costs squeeze supply chains. Seafood staples such as mackerel and croaker, along with imported poultry cuts, have all seen sharp price increases.

According to Korea Customs Service trade statistics, the import price of frozen mackerel stood at 6,627 won per kilogram in April, up 67.8 percent from a year earlier. Compared with the price at the start of this year, it has jumped 97.4 percent. Mackerel was priced at 3,357 won per kilogram in January but surged to 5,500 won in February when the Iran war broke out. It has remained elevated since, reaching 6,851 won in March before easing slightly to 6,627 won in April.

The primary driver of higher mackerel import prices is Norway's reduction of its fishing quota. Following scientific recommendations from the International Council for the Exploration of the Sea, Norway cut its mackerel catch allocation this year by 52 percent from the previous year to 79,000 tons. A high exchange rate and rising logistics costs stemming from the Middle East conflict compounded the pressure.

Other seafood categories also recorded steep increases. Chilled live octopus rose 26.3 percent year-on-year to 31,828 won per kilogram. Frozen croaker climbed 26.2 percent to 8,734 won. Chilled salmon, which relies heavily on air freight, rose 17.4 percent to 17,055 won per kilogram. Pacific saury (15.4 percent), webfoot octopus (15.3 percent), pollock (13.2 percent) and common octopus (10.2 percent) also posted double-digit gains.

Chicken prices have continued to climb. Frozen chicken legs reached 4,412 won per kilogram, up 24.1 percent from a year ago. The cut was priced in the 3,000-won range in early 2025 before crossing the 4,000-won threshold in September. Frozen chicken breast rose 40.0 percent, while frozen chicken wings gained 12.7 percent. Imported chicken has emerged as a substitute for domestic supply disrupted by highly pathogenic avian influenza. Industry observers warn that because many fried chicken chains rely on imported poultry, the price increases could feed through to consumers.

Behind the import price increases are a persistently weak won and prolonged Middle East tensions that have pushed up logistics costs. The won-dollar exchange rate has held above 1,500 won since May 15. The Shanghai Containerized Freight Index, a benchmark for global maritime shipping rates, stood at 2,726.48 on June 5, up 6 percent from the previous week and 104.5 percent above the 1,333.11 recorded on Feb. 27, when the Middle East war broke out.

Retailers are working to contain costs and secure supply. E-mart began selling Chilean mackerel this month as an alternative to Norwegian mackerel, whose import costs have risen sharply because of the high exchange rate. Chilean mackerel is priced up to 50 percent lower than the Norwegian variety. For shrimp meat, E-mart has also shifted toward Peruvian imports, which enter duty-free, and away from Southeast Asian sources subject to roughly 20 percent tariffs.

Lotte Mart has locked in large forward contracts for Norwegian fresh salmon and imports it directly by air freight, bypassing intermediate distribution. Even so, air-freighted salmon is running about 10 percent above last year's market price because of the weak won. With US beef prices up roughly 10 to 15 percent year-on-year, the retailer has expanded its offering of Australian beef, which is priced about 10 percent lower.

"Consumers are feeling the pinch at the checkout, so we are focusing on diversifying our sourcing," an official at a major hypermarket said. "If the Middle East situation drags on much longer, price increases will be unavoidable not just for seafood and poultry but across a wide range of products."


korean@heraldcorp.com