"Kimjang Will Be Difficult Too"... High Vegetable Prices and Processed Foods Continue to Soar in the Second Half

Vegetable Prices Continue to Rise... Radish Up 3x, Cabbage 2x
Typhoon 'Hinnamnor' May Cause Further Increases
Food Industry Also Announces Price Hikes
Nongshim and Paldo Ramen Prices Set to Rise
Orion Raises Confectionery Prices for First Time in 9 Years

[Asia Economy Reporter Song Seung-yoon] The all-around price increases are expected to continue even after the holidays. The rising vegetable prices driven by adverse weather conditions are maintaining their upward trend, and essential goods such as ramen are also facing consecutive price hikes. Although vegetable prices are generally more stable compared to before Chuseok, they are still on the rise.

According to the Agricultural Products Distribution Information from the Korea Agro-Fisheries & Food Trade Corporation on the 14th, the wholesale price of 20kg of radish was 31,180 won as of the previous day, nearly three times (187%) higher than 10,864 won during the same period last year. The wholesale price of 10kg of napa cabbage rose 129% from 14,368 won a year ago to 35,140 won, and cabbage prices also increased 118%, from 5,529 won to 12,060 won for 8kg. The wholesale price of 4kg of spinach surged 81% to 61,780 won compared to 33,964 won in the same period last year. Onions, based on 15kg, rose 58% from 14,400 won to 22,760 won, and minari (water dropwort) prices increased 21%, from 62,300 won to 75,733 won for 7.5kg.

The Korea Rural Economic Institute forecasts that vegetable prices will continue to rise this month compared to the same month last year due to a decrease in the shipment volume of major agricultural products. The institute expects the wholesale price of 10kg of Cheongyang green chili peppers to be 48,000 won this month, 89% higher than 25,400 won in the same month last year. Oi Mat chili peppers are projected to rise 10.2% to 40,000 won per 10kg from 36,300 won last year. Paprika (red) is also expected to increase 46.5% to 40,000 won for 5kg due to reduced shipments. The decrease in production volume is attributed to reduced cultivation areas and pest damage. If the impact of Typhoon No. 11 'Hinnamnor' is factored in, actual prices may exceed these projections.

Along with the rise in international grain prices and the surge in the won-dollar exchange rate, the food industry is also announcing consecutive price hikes. Ramen prices have already been announced to increase. Nongshim, the market leader in ramen, announced that from the 15th, the shipment prices of major ramen products will increase by an average of 11.3%. The price increase rates by product are 10.9% for Shin Ramyun, 9.9% for Neoguri, and 13.8% for Chapagetti. Paldo will raise prices of 12 ramen brands by an average of 9.8% starting next month on the 1st. The main products’ price increases based on supply prices are 9.8% for Paldo Bibimmyun, 11.0% for Wang Ttukbaegi, and 9.9% for Teumsae Ramen Red Rice Cake. This price hike could signal a chain reaction with other ramen companies like Ottogi and Samyang Foods following suit.

The confectionery industry is no different. Orion plans to raise prices on 16 out of 60 products, including pies, snacks, and biscuits, by an average of 15.8% starting on the 15th. Key products will see increases such as 12.4% for Choco Pie, 12.3% for Poca Chip, 11.7% for Kkobuk Chip, and 25% for Yegam. Orion had kept prices frozen across all products for nine years since 2013 through cost reductions.

Dining-out prices are inevitably affected by the rise in processed food prices. According to the Korea Consumer Agency’s comprehensive price portal Chamgagyeok, as of August, the average price of cold noodles in Seoul surpassed 10,000 won, reaching 10,500 won, and gimbap prices also exceeded 3,000 won, reaching 3,046 won.

This content was produced with the assistance of AI translation services.