South Korean restaurants struggle to survive as global oil prices eat into profits

Kim Bong-hwan, who runs a barbecue restaurant in Myeong-dong in central Seoul, is feeling the brunt of rising costs, with wholesale beef prices climbing from about 28,000 won (US$18) per kilogram to more than 40,000 won in recent weeks.“Everything’s going up – beef, pork, eggs, vegetables and even disposable materials like plastic bags and containers,” he said. “Prices have risen 20 to 30 per cent in just a few weeks.”Kim, who has operated the restaurant for more than 15 years, said raising menu prices was a last resort as he feared losing customers.“For now, I’m absorbing the hit to my margins,” he said. “But I’m worried this is only the beginning and the worst is yet to come.”Like Kim, many small business owners across South Korea are grappling with rising fuel, ingredient and packaging costs as higher global oil prices ripple through the economy amid tensions in the Middle East.Global oil prices have surged amid the escalating conflict. As a major energy importer, South Korea is particularly vulnerable to higher prices, which are pushing up costs across industries, including fertilisers, animal feed, farm fuel and transport.