Song Chi-young, chairman of small business association, left, and Small and Medium Business Minister Han Sung-sook pose for a photo at a meeting on the impact of the Middle East war in Seoul on Tuesday. Photo by Asia Today
April 1 (Asia Today) — South Korean small businesses are facing sharp increases in packaging costs and supply shortages, with some warning they are struggling to operate as disruptions linked to the Middle East conflict ripple into the domestic economy.
At a government meeting held in Seoul on Tuesday, business owners described severe difficulties securing basic materials, including packaging containers and even pay-as-you-throw garbage bags.
“I can’t even find trash bags, let alone packaging materials,” one participant said, describing the situation as a direct impact of global disruptions reaching local businesses.
Officials and industry representatives said prices for key materials have surged in recent days. The cost of plastic egg trays rose from 81 won to 131 won, a 61.7% increase, while plastic capsules for smaller packaging climbed 46.9%. Supplies of plastic wrap and binding materials have also dropped to about half of normal levels, creating what participants described as a “supply shock.”
The impact is spreading across sectors. A business owner operating both a factory and a restaurant said waste disposal has been disrupted due to shortages of garbage bags, raising hygiene concerns. An interior industry official warned that rising raw material costs could lead to monthly losses of about 10 million won (approximately $7,400) once existing contracts expire.
Song Chi-young, head of a small business group, said plastic bag prices have doubled within a week and called for stronger government action against hoarding and broader support measures.
In response, Small and Medium Business Minister Han Sung-sook said the government would strengthen emergency response systems and expand support for small businesses. Plans include prioritizing liquidity assistance in a supplementary budget and launching a nationwide consumption campaign beginning April 11.
Delivery platform companies were also urged to share the burden. Representatives from major food delivery firms said they are reviewing additional support measures, including expanding eco-friendly packaging initiatives and exploring ways to reduce plastic use.
Han said the crisis requires coordinated action across the economy, stressing that businesses and platforms must work together alongside the government to mitigate the impact of rising costs and supply disruptions.
The developments highlight how global geopolitical tensions are increasingly affecting everyday business operations, particularly for smaller firms with limited capacity to absorb sudden cost increases.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260129010013458