Severe Heat Wave Drives Up Food Prices and Energy Demand in South Korea

South Korea is experiencing a severe heat wave that has caused food prices to spike and electricity demand to reach a yearly high. According to data from the Korea Agro-Fisheries and Food Trade Corp, the retail price of 100 grams of spinach rose by 152.3 percent over the last month. Prices for 10 cucumbers and 100 grams of blue lettuce increased by 54.8 percent and 41.7 percent, respectively. The government attributed these hikes to the vulnerability of green vegetables to high temperatures.

The heat wave has also caused significant losses in livestock and aquaculture. Data from the agriculture ministry shows that 901,602 livestock died, with poultry making up 95 percent of those losses. Additionally, 864,497 fish died due to warming ocean temperatures. This has led to a 13.2 percent year on year increase in the average auction price of 1 kilogram of flounder. Industry watchers expect fish prices to remain high into September because sea temperatures cool more slowly than land temperatures.

Simultaneously, the Korea Power Exchange reported that maximum electricity demand reached 95.321 gigawatts on Friday, the highest level for the year. The energy ministry has increased the energy supply by 2 gigawatts compared to last year and prepared an additional 8.8 gigawatts of reserve to prevent disruptions. To combat heat driven inflation, the government is increasing imports of broiler chickens and expanding fish promotional events at discount stores. Midday temperatures reached 40 C early last week and are forecast to ease to around 34 C on Sunday.