South Korean Residents Raid Trash Bags, Middle East Crisis Begins to Disrupt Plastic

JAKARTA - The Middle East crisis is starting to be felt on store shelves in South Korea. Not only oil is disrupted. Residents are now rushing to buy garbage bags because they are worried that the supply of plastic and vinyl will be disrupted.

Kyodo News reported on Tuesday, March 31, that the surge in spending came as global crude and naphtha supplies continued to be disrupted by the prolonged tensions in the Middle East. Naphtha is an important raw material for the petrochemical industry, including plastics and various packaging materials.

In South Korea, garbage bags are not trivial items. In a volume-based waste management system, households are required to use official plastic bags designated by local governments for general waste and food waste. Therefore, when there is concern that supplies will be disrupted, residents immediately buy them.

Sales data shows a sharp spike. E-Mart recorded a 287 percent jump in sales of garbage bags in the period from March 22 to Sunday. Lotte Mart recorded a 140 percent increase from March 23 to Saturday. In the GS25 convenience store network, the spike even reached 325 percent.

Still according to Kyodo News, a number of retailers have started to limit purchases to curb hoarding and maintain stock. Homeplus, for example, asked its stores to limit sales to one pack per person.

This disruption was triggered by concerns over domestic naphtha supplies after the United States and Israel air raids on Iran. The impact is now spreading to other sectors that are highly dependent on plastics, especially the food and beverage delivery business.

Fried chicken chains, coffee shops, and other businesses that use a lot of glass and plastic containers are starting to feel the cost increase. An official at Ediya Coffee said disposable glass manufacturers have signaled price increases and production cuts.

Genesis BBQ Group, the franchise operator of BBQ Chicken, also warned its partners that a spike in oil prices could drive up the cost of shopping plastic bags, aluminum containers, and logistics.

A chicken franchise official said that current stocks are still safe, but the risk of price increases is very large. If the crisis continues, the burden could eventually fall on the store owner.

"For now, there is no problem with direct supply to our inventory, but the possibility of price increases is very large," a chicken franchise official quoted from Kyodo News said. "If this situation continues, the burden could eventually shift to franchise owners."