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A common cabbage to Korea, like married into wealthy, worth double. The end of September, its retail price has soared to even Meike 13,800 won a record high. Cabbage prices also made the most representative characteristics of Korean kimchi embarrassing.

Kimchi crisis that exposed the soft underbelly of the Korean economy. In order to address the financial crisis, the Korean government implemented a super loose monetary policy and currency appreciation to [link widoczny dla zalogowanych] intervene several times. However, these policies had little effect.

Kimchi in Korea, standing in the eyes of ordinary people is unmatched by other foods. It is necessary for Korean dishes each day, the beginning of winter season every year, Korea will enter the kimchi season almost every family must make kimchi, to prepare for the coming year in winter and spring consumption. But this year, people must wait in line to buy [link widoczny dla zalogowanych] government emergency import of Chinese cabbage.

President Lee Myung bak ordered the Office of the President of the country when making kimchi in Korea renounce the use of the high price of cabbage in favor of cheaper European cabbage. This approach not only failed to resolve the crisis, but let the people feel that [link widoczny dla zalogowanych] their president did not appreciate the pain of people do not understand the feelings of the working class.

Although the crisis [link widoczny dla zalogowanych] and the Korean kimchi freak weather this year has a lot [link widoczny dla zalogowanych] to the typhoon, heavy rainfall and other extreme weather, resulting in a substantial cut cabbage. However, in addition to weather and other natural factors, South [link widoczny dla zalogowanych] Korea rose to a 17 month high inflation rate has become one of the driving force behind.
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Inflation caused a very important reason is that the South Korean government to stimulate the domestic [link widoczny dla zalogowanych] economy, the implementation of a very loose monetary policy, and shot several times outside to buy dollars to promote the Korean won depreciation, the high for the domestic inflation rate is undoubtedly worse. People will not only increase the burden of high prices, also contributed to union wage the struggle to raise the cost of Korean companies led to less competitive countries, foreign companies to leave South Korea.

Basket facing painful crisis, the South Korean government did not blind , but in connivance with the inhibition of ultra loose policy between high inflation, the government seemed to be somewhat hectic. This busy and blind from this conflict, kimchi crisis get a glimpse. The Government continued to promote the Korean won depreciation will inevitably cause inflation, high inflation and lead to price to sell cabbage, the government in turn sell cheap alternatives.

In addition, South Korea s food self sufficiency rate is only slightly higher than 20 . As a rule, [link widoczny dla zalogowanych] based on the agricultural situation, South Korea, the [link widoczny dla zalogowanych] import of cheap agricultural products from [link widoczny dla zalogowanych] overseas should be more open, but the Korean government to protect their own vulnerable industries, has been to prevent the import of high taxes. Do indeed protect the interests of Korean farmers, but also brings risks.

This kimchi crisis is a good evidence. Although early October the South Korean government has announced the temporary lifting of Chinese cabbage and turnip and other agricultural import tariffs, but people s feelings have been hurt, they may even miss the traditional kimchi season. If true market liberalization of imports, South Korea did not appear the the kimchi crisis , and even South Korea will be directly related products, price levels down to a new level, so that consumers enjoy the benefits.

Ye Hao [link widoczny dla zalogowanych] devaluation of the currency, intervention [link widoczny dla zalogowanych] imports worth mentioning, although the Korean government to do so for the purpose of the domestic industry and macro economic boost, but at least have to think about people s feelings. At least, [link widoczny dla zalogowanych] in the production of Chinese cabbage kimchi with the issue, not to replace with an inexpensive product can be resolved.

Next month, [link widoczny dla zalogowanych] world renowned summit of the Group of Twenty of the country will be held in this pickle, do not know by that time, used to entertain dignitaries dinner parties, the Council of Europe will not be cheap kimchi on the scene.