As geopolitical risks from the Middle East conflict persist, driving sharp rises in international oil prices and exchange rates, Korea's retail industry is responding by overhauling product sourcing, supply chains, and delivery strategies.
According to livestock distribution information platform Dabom, prices of U.S. chilled beef have risen more than 28% from a year ago as of the 5th. Frozen beef stockpiled five to six months earlier at lower prices is now replacing it. One major hypermarket has switched from beef primarily imported from the Americas and Oceania to Irish beef, defending costs against the rising won-dollar exchange rate. Irish beef is approximately 30% cheaper.
Mackerel, often called Korea's "national fish," is also affected. Norwegian mackerel prices have jumped more than 25% due to exchange rates and logistics costs. Chilean Pacific chub mackerel, priced at roughly half the cost, is now dominating store shelves.
Imported fruits have also come under pressure from the high exchange rate, prompting retailers to expand their frozen fruit offerings, which are less exposed to short-term currency fluctuations. One major hypermarket has more than tripled its volume of Australian Calypso mangoes, which can be settled in Australian dollars instead of U.S. dollars, to block foreign exchange losses. The retailer also switched payment for Norwegian frozen salmon imports from U.S. dollars to Norwegian krone starting late last year, adopting a currency hedging strategy.
E-commerce companies including Coupang are adjusting delivery routes to contain rising delivery costs driven by high oil prices. Previously, they chose the shortest routes to minimize delivery times. Now they are shifting to bundled delivery, loading multiple packages onto a single route even if it takes longer. Companies are also accelerating the adoption of artificial intelligence (AI) for route optimization.
"When costs borne by delivery drivers increase, there will inevitably be calls to raise delivery fees," an industry official said. "Ultimately, contracts will be renegotiated or prices adjusted, and that will directly translate into higher costs."