[News Space=Reporter seungwon lee] When President Lee Jae-myung was pointed out during a Fair Trade Commission business report on December 19 that domestic sanitary pad prices were 39% more expensive on average than overseas, he immediately ordered the Fair Trade Commission to investigate.

According to Statistics Korea, the consumer price index for sanitary pads rose from 100 in 2020 to 120.91 in 2024, representing a roughly 20% increase over the past five years. As of the third quarter of this year, it was 118.48, showing a slight decline. This figure significantly exceeds the overall inflation rate (14.18%).

The president stated, "I don't understand why domestic sanitary pads are so expensive," and requested an investigation to determine whether it's due to a monopoly structure, collusion, or abuse of market dominance. Indeed, according to a report released by the Korean Women's Environmental Network in May 2023, a comparison of 462 domestic sanitary pads with 66 sanitary pads from 11 countries revealed that domestic sanitary pads were 39.05% more expensive on average. Specifically, panties were 59.91% more expensive, and overnight pads were 57.91% more expensive .

The domestic sanitary pad market is dominated by two major companies: Yuhan Kimberly and LG Unicharm. Analysts suggest this monopolistic market structure has contributed to price increases. The market size is estimated to exceed KRW 550 billion by 2025.

Looking at market share by company, Yuhan-Kimberly holds approximately 50-60% with its "White" and "Secret Day" brands, while LG Unicharm holds 20-30% with its "Good Feeling" brand. P&G and Clean Nara, which have entered the market with brands like "Whisper" and "Clean Nara," each hold around 10% of the market. The remaining 10% is divided among various small and medium-sized sanitary pad companies.

Sanitary pad price increases continued this year. Beginning in May, 23 types of sanitary pads sold at convenience stores, including Bodyfit and Good Feel, saw their prices rise from 100 won to 900 won. In October, E-Mart 24 raised the prices of some products by up to 33.9%. Consumers are responding, saying, "If you're looking for value, you might as well just stick to diapers." 

The president noted the rise of overseas direct purchases and suggested, "We should also consider allowing tariff-free imports to encourage real competition." He also mentioned the past controversy surrounding "insole sanitary pads," raising suspicions that domestic companies may be exploiting their monopoly positions to generate excessive profits.

The government provides a monthly voucher worth 13,000 won for sanitary products to low-income female adolescents aged 9 to 24. While sanitary pads have been exempt from value-added tax (VAT) since 2004, criticism persists that the VAT imposed on raw materials used in the manufacturing process limits their impact on lowering consumer prices.

Fair Trade Commission Chairman Joo Byung-ki responded, "We haven't investigated sanitary pad prices yet. We will investigate," explaining that the investigation wouldn't require a large workforce. 

The domestic sanitary pad market is facing various problems, including price increases, a monopolistic structure, and increased burden on consumers, and the government's investigation and response are attracting attention.