South Korea’ Food Processing Industry: Standing on Three Pillars

The pricing policy in the Korean food processing industry is directly affected by the changes in foreign exchange rates. The industry has to rely on international prices owing to chronic trade deficits and excessively huge agricultural imports. However, so long as the trend of Korean Won is maintained on the higher side, it will help the food industry to keep its profit high.

The Korean food industry is also closely linked with the domestic business cycles. Unlike the luxurious goods whose demand fluctuates dramatically with respect to changes in income, this is not so with food items whose consumption elasticity is relatively low. In Korea the country’s business cycle affects the food sector every three to six months.

Another characteristic o View the rest of this article