South Korea Warns Retailers on Price Hike

The South Korean government issued a warning to chicken retailers planning to raise prices after the series of bird flu outbreaks in the country.

According to the Ministry of Agriculture, Food and Rural Affairs, the government will consider conducting tax investigation on chicken chains to find out whether their menu price hikes were justified.

“We will ask the National Tax Service to proceed with tax investigations of chicken franchises to see if they took unfair profits by raising menu prices,” the ministry said in a released statement.

The ministry said that chicken retailers cannot raise their prices due to the outbreaks of bird flu as their contracts with poultry distributors are set for six months to one year before deliveries.

South Korea’s biggest chicken chain, BBQ Chicken, is planning to raise the price of chickens on its menu by up to 10 percent starting next week.

It raised concerns that other restaurants may follow BBQ Chicken’s lead.

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