Daily Management Review

South Korea to fight against shrinkflation


The South Korean government will mandate manufacturers to disclose the amount by which a product package's weight or volume has been lowered, starting in 2024. The goal of this measure is to combat the "shrinkflation"—a phenomenon in which product packaging shrinks rather than the price rises.

Morning Calm Weekly Newspaper Installation via flickr
Morning Calm Weekly Newspaper Installation via flickr
A special committee is being formed to oversee the quantity and cost of the products. Violators may be subject to fines.

This year, many South Koreans have expressed dissatisfaction at the shrinking sizes of packages for a variety of products, including beer, chips, dumplings, and chicken meat. The Finance Ministry of South Korea previously announced that at least 37 instances of decreasing package sizes were found during its inquiry.

The nation's inflation rate peaked in July 2022 at 6.3% and fell to 3.3% in November of the same year. Although this is far lower than in many other nations, East Asia has had exceptionally low inflation in previous years, therefore the current level has resulted in a noticeable worsening of the consumer situation.

source: reuters.com