Heatwave drives up food prices, power demand

South Korea is seeing a steep rise in agricultural prices, with a single watermelon priced at 33,000 won (about $25) and a head of cabbage exceeding 6,000 won, amid record-setting summer heat. Experts warn that the ongoing combination of extreme heat and heavy rain could further disrupt the supply of seasonal produce. Meanwhile, electricity demand has surged, with July’s average peak usage reaching the highest level ever recorded for the month.

The average retail price of a watermelon stood at 33,337 won as of Aug. 1, according to the Korea Agro-Fisheries & Food Trade Corporation. That figure marks a 17.6 percent increase from a year earlier. Prices also rose 25.0 percent compared to the seasonal average and 33.7 percent from a month ago. The surge is blamed on poor crop growth due to extreme heat, combined with increased seasonal demand.

Cabbage, which typically sees wide price swings in summer, climbed to 6,114 won per head, up 11.2 percent from a year earlier. The price also jumped 68.0 percent compared to a month ago. Peaches, another seasonal item, rose 25.1 percent year over year, with a pack of 10 selling for an average of 21,133 won.

Among livestock products, eggs posted notable price gains, driven by inflation and rising demand for home-cooked meals. In late July, the average retail price for a pack of 30 large eggs was 6,984 won, up 7.9 percent from a year earlier. On Aug. 2, the average rose to 7,349 won, marking a 9.1 percent year-over-year increase.

Persistent heat drove average peak power demand in July to a record high for the month. The Korea Power Exchange said the average peak demand reached 85.0 gigawatts, a 5.6 percent increase from a year earlier. Peak demand refers to the highest level of electricity usage during any one-hour period.

This was the highest July figure since power demand records began in 1993. On July 8, peak demand hit 95.7 gigawatts at 6 p.m., the highest ever recorded for that month. Analysts say the unusually early onset of extreme heat contributed to the spike.

The government projects this summer’s peak demand will occur between 5 and 6 p.m. during the second week of August, reaching between 94.1 and 97.8 gigawatts. If demand reaches the upper end of that range, it would surpass the previous record of 97.1 gigawatts set on Aug. 20 last year.

Still, the government said the power supply remains stable, with 8.8 gigawatts of reserve capacity even during peak demand. Authorities have designated a power supply contingency period through Sept. 19 and are running a joint emergency response center with related agencies.


세종=김수연 기자 syeon@donga.com