Same price, less content: 33 products accused of 'shrinkflation'

A state-run agency said Thursday it has found 33 products that have downsized but maintained the same price in an inspection of so-called "shrinkflation" in the country.

The Korea Consumer Agency, under the Korea Fair Trade Commission, inspected the products currently being circulated in the market to check the state of shrinkflation, which refers to a manufacturer downsizing a product while retaining the price as an alternative to raising the price. The agency used its price information website Chamgagyeok along with data provided by eight major department stores, online shopping malls and large discount stores.

It found that 15 locally manufactured and 18 imported products have reduced their content in the first quarter of this year by between 5.3 percent and 27.3 percent. Thirty-two were processed food products, while one was a detergent.

Not all the products retained their prices, such as one company's chicken nuggets being sold at a lower price than before. However, the company had reduced the quantity of nuggets by 22.2 percent, resulting in the nuggets being pricier per gram.

The company blamed last year's hike in the wholesale price of chicken.

The KCA recommended the companies notify customers of the changes in quantity by posting the related information on the Chamgagyeok website and the respective companies' homepages.

The agency conducts regular inspections of the shrinkflation in the country and allows consumers to report suspect cases through its website.

The South Korean government has been implementing policies against shrinkflation, including the FTC in May mandating companies to notify consumers when reducing the quantity of their products. The companies who fail to do so will face a 5 million won ($3,600) fine for their first violation, and a 10 million won fine for their second one, according to the new measure that will take effect Aug.3.