Consumer prices have soared in recent weeks, putting a crimp on the livelihoods of many ordinary South Korean people. An increase in spending on private education has also imposed a burden on the middle class, with the incoming administration’s new education polices adding fuel to the fire.

Meanwhile, a spike in the prices of agricultural products in global markets has sent local food makers rushing to raise the prices of their products. The price of ramyeon rose from between 50 to 100 won (US$1 = KRW942.798), and prices for snacks, bean curd and beverages also followed suit. The price of beer, which increased last year due to hikes in its raw ingredients, is also showing signs of going up again, while pulp prices will likely rise by 5 percent soon.

Restaurants have also joined in the move to increase prices. Due to soaring flour costs, restaurants have raised the prices of their most popular Chinese dishes by between 500 to 1,000 won in the past month alone. A kimbap shop owner in central Seoul said, “Last year, flour prices jumped twice, but we didn’t reflect that in the prices of dishes containing products made of flour. Now, we have decided to raise the prices of these items by 500 won as we cannot shoulder the burden of the raw material price hikes any more.” A toast sandwich seller said, “After raising our prices from 1000 won to 1300 won, I saw the number of customers decrease by more than half.”

Things are expected to get tough for the time being as the prices of global produce are not showing any signs of a letup. Kim Go-sik, an executive of CJ CheilJedang, the food and lifestyle products company, said, “Currently, it has become tough to predict how produce prices will go as speculative investors are even weighing in on the market ... In the short term, such price hikes will continue until May.”

An office worker, known only by his last name Han, plans to send his youngest child to a kindergarten focusing on English-language education starting this March. It will cost him 300,000 won more than when he sent his child to an ordinary kindergarten, but he made the decision so as to prepare his child for English classes that will be launched when the child enters elementary school. “Most kindergarten students in seven-year classes have switched to such English programs,” Han said. English-language kindergartens had previously been a choice only for some wealthy parents, but these days are becoming a more popular choice for middle-income people as well. Han said that he will have to pay an additional 250,000 won a month for his eldest child’s English language lessons beginning in March, an increase from the previous 200,000 won. In total, he will pay 1.4 million won every month in private education costs for both of his children starting next month.

Spending on private education has long been a huge burden for mid-income earners in South Korea. According to the National Statistical Office, an urban household spent a monthly average of 281,786 won for private education in 2007. That marked a 10.1 percent increase compared with a year earlier, when spending outpaced income growth. Still, the average figures are not enough to reveal the whole picture. A middle-income family with two children spent an average of 2 million won in private education fees last year, which accounted for more than half of the family’s total expenses. It is not unusual for housewives to work at restaurants, discount chains, and wherever they can to earn extra money. This year, the fees for piano, painting and private English lessons will continue to rise.

The incoming administration’s education plans, including the introduction of English-language intensive programs in the public schools and the opening of more private high schools, are also likely to increase the financial burden on individual households. Park I-seon, a member of a parents’ group, said, “The new administration’s education polices are mainly intended to strengthen private education, which will inevitably increase the financial burden on many people.”

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