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Korea National Council of Consumer Organizations
Periodic Survey of Staple Commodities: Chinese cabbage price rose in April across the country
In an April survey of the prices of staple commodity, the number of target items was increased from 30 to 37. Among the newly included items were lettuce, turnip, chicken, imported beef, dried anchovies, laver, and chilly sauce. Strawberries and melons were also included instead of apples and pears in our April and May survey to reflect the seasonal changes in the fruit market.
(See Consumer Information Corner for a detailed survey outcome by region and item)
The areas which showed the highest and lowest consumer prices of staple commodities and services in our April survey were as follows:
First, the areas which had the highest consumer prices by item were: Goyang, which showed the highest consumer price for rice (53,650 won); Seoul: Chinese cabbage (1,672 won); Incheon: lettuce (2,269 won); Busan: spinach (1,514 won); Daegu: turnips (1,087 won); Jinju: strawberries (4,700 won); Changwon: melon (3,483 won); Gwangju: Korean beef (5,509 won); Daegu: pork (1,773 won); Goyang: chicken (5,840 won); Incheon: imported beef (3,811 won); Daegu: mackerel (3,168 won); Cheongju: eggs (2,176 won); Seoul and Wonju: ramen (496 won); Ulsan: ham (2,630 won); Jeonju: milk (1,690 won); Ulsan: yogurt (534 won); Suwon: fruit juice (2,200 won); Jinju: bottled water (386 won); Ulsan: soju (956 won); Seoul and Ulsan: beer (1,246 won); Busan: powdered milk (18,880 won); Daegu: Choco-Pie (1,970 won); Jeonju: coffee (8,339); Ulsan: canned tuna (1,371 won); Seoul: sugar (2,755 won); Jeonju: flour (2,721 won); Jeju: sesame oil (5,488 won); Wonju: corn oil (3,841 won); Ulsan: chili sauce (6,232 won); Daegu: toothpaste (2,143 won) and synthetic detergent (10,047 won); Gwangju: boxed tissue paper (4,869 won); Incheon: diapers (26,147 won).
Next, the areas which experienced the lowest consumer prices by item were: Daejeon: rice (42,705 won); Jeonju: Chinese cabbage (1,046 won); Jinju: lettuce (1,082 won); Jeju: spinach (730 won) and turnips (479 won); Ulsan: strawberries (2,226 won); Incheon: melon (1,901 won); Gwangju: Korean beef (5,509 won); Wonju: pork (1,335 won); Jinju: chicken (3,608 won); Jeju: imported beef (1,432 won); Jeonju: mackerel (1,253 won); Incheon: tofu (1,274 won); Wonju: dried anchovies (1,038 won) and laver (570 won); Jeju: eggs (1,576 won); Daejeon: ramen (464 won); Busan: ham (2,300 won); Goyang: milk (1,613 won); Incheon: yogurt (378 won); Chuncheon: fruit juice (1,688 won); Wonju: bottled water (264 won); Daegu: soju (863 won); Goyang: beer (1,128 won); Wonju: powdered milk (14,125 won); Jinju: Choco-Pie (1,580 won); Daegu: coffee (7,580 won); Changwon: canned tuna (1,294 won); Busan: sugar (2,519 won); Daegu: flour (2,382 won); Jeonju: sesame oil (4,608 won); Goyang: corn oil (3,469 won), chili sauce (5,566 won), and toothpaste (1,645 won); Chuncheon: synthetic detergent (7,745 won); Goyang: boxed tissue paper (3,856 won); and Chuncheon: diapers (23,630 won).
Consumer prices for stable commodities rose slightly over the preceding month across the country. Chinese cabbage showed the greatest increase: Gwangju metropolitan city was the area where the price of Chinese cabbage experienced the greatest increase, by 40.6%, from 1,084 won in February to 1,524 won in March.
▶ Contact: Choe Eun-mi, Program Secretary (02-774-4050) |
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Seoul YMCA Citizens’ Mediation Center
Consumers Start Action to Make SMS and CID Free Services
1.4 trillion won, or 7% of total household income, is spent on SMS and CID which have almost become basic necessities in life as 90% of subscribers now use them. It is unfair for consumers to bear the charges for both basic and value-added services when the phone companies are not incurring any further costs for investment or the maintenance of their existing facilities.
1. The CID and SMS services, which are used by 90% of mobile phone service subscribers, are no longer to be referred to as value-added services in the Korean mobile phone service environment as their use has increased dramatically. In particular, SMS usage has increased so exponentially as to exceed voice call service usage in many instances. It has been estimated that the consumers pay nearly one trillion won for SMS usage, as it has become somewhat akin to a basic service, while the total bills for the CID service amount to 400 billion won.
2. The SMS service was initially a free service but later became a paid service. Its service rate increased from 10 to 20 won, and now stands at 30 won. The CID service rate, which was set at 2,000 won when the service was first introduced in 2001, has declined to 1,000 won as a result of the consumer campaign to make it a free service. (1,000 won is now the going rate for this service, although 2,000 won is still charged by some companies.) The phone service companies make enormous net profits without making any additional facility investment as they use their existing network for their SMS and CID services. They have already earned profits several times over their initial investment from these services, even if they have made some subsequent investment. There is no other explanation for this history of greatly increased charges for the SMS service but to describe the behavior of these businesses as unfair, since they enjoy an unprecedented monopolistic or oligarchic position vis-a-vis the consumers. Usage has greatly increased, irrespective of cost, while the basic market principle that cost decreases when usage increase has been entirely passed over. Therefore, consumers groups argue that these two services should be provided free of charge as the service companies do not need to add any additional network usage cost for the SMS or CID services, and the consumers already pay for the network cost through the basic charge.
3. Though Jin Dae-je, the Minister of Information and Communication, announced his position in 2003 as to the ministry’s policy to make CID a free service, the ministry has not yet fulfilled its commitment. The ministry now says that it will be difficult to intervene in the matter of the SMS charge as it is a value-added service. Such a shy attitude from the ministry has resulted in an excessive burden being imposed on the consumers by the mobile phone service companies, while the latter are granted such privileged benefits that they easily generate enormous income from value-added services which have already become so popular that no significant cost is incurred by the service providers. The ministry should resolve to adhere to its stance and make SMS and CID free, since their cost is already covered in the basic charge, and should also take action to urge the mobile phone service companies to comply with such A policy.
4. Thus, Seoul YMCA is launching the ‘Consumer Action to Make SMS and CID Free Service’ initiative in alliance with the National YMCA Headquarters, concerned NGOs, online communities, user groups and clubs. At 11:00 on 27th (Wed), when the action is scheduled to commence, the first street campaign will be staged in front of the Jongno YMCA building where a parody of Crying Fist will be enacted and a large-scale performance will be staged to warn the mobile phone service companies that they will eventually cause consumers to collapse by increasing their household expenses.
▶ Contact: Kim Hui-kyeong, Secretary, Citizens’ Mediation Center (02-725-1146) |
