The South Korean government has begun preparing support measures for cafe owners facing a management crunch as the Middle East war drives up the cost of supplies.
The Ministry of SMEs and Startups on the 21st held an emergency meeting with the National Cafe Owners Cooperative to assess business conditions for small cafe operators strained by a weak won and higher oil prices, and to hear on-the-ground concerns. Cafe owners said costs have risen as prices for plastic cups, vinyl and other packaging materials increased amid a spike in oil prices and difficulties securing naphtha.
With instability in the Middle East pushing up oil and raw material prices, naphtha’s monthly average price last month rose more than 67% from the previous month, per ton. Coffee beans, a key input, have also climbed. Data from the Korea Agro-Fisheries & Food Trade Corp.’s food industry statistics system showed Arabica beans traded in March at $6,768.12 per ton, up about 9.19% from the February average.
The ministry and the cooperative shared details on price hikes and delivery conditions for items such as plastic cups and vinyl, and discussed possible support steps for small business owners affected by the war.
They also reviewed proposals to help cafes shift from plastic to alternative materials and to ease the cost burden on small operators during that transition.
The meeting marked the government’s third industry-specific support effort, following similar sessions with bakeries and the broader food service sector. The ministry has previously raised the issue of surging plastic container prices with relevant agencies during talks with the Korea Foodservice Industry Association.
Second Vice Minister Lee Byeong-gwon said, “We have listened to a range of difficulties faced by small business owners through meetings with bakeries and the food service industry, but coming to the field, the impact feels even greater.”
Lee also said the government would actively seek cooperation with rules it announced on the 15th on banning hoarding and allowing emergency supply-demand adjustments for petrochemical product feedstocks. The rules bar hoarding of seven basic fractions produced from naphtha: ethylene, propylene, butadiene, benzene, toluene, xylene and other fractions.
“If instability in the supply of packaging containers occurs, we will closely monitor conditions with relevant ministries, including by designating additional items as needed,” Lee said.
* This article has been translated by AI.
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