Ramen and Kimchi Prices Rise... Food Costs Burdening Ordinary People

Nongshim, Paldo, Ottogi, etc... Ramen Price Increase
Cabbage Prices Also Rise... CJ CheilJedang, Daesang, etc. Raise Kimchi Prices
Possibility of Continued Food Price Inflation in Second Half
Government Begins Price Increase Review in Food Industry

On the 15th, Nongshim raised the prices of 26 ramen brands by an average of 11.3%. As a result, the convenience store selling price of one pack of Shin Ramyun increased from 900 won to 1,000 won. The photo shows a ramen display at a large supermarket in Seoul on the same day. [Image source=Yonhap News]

[Asia Economy Reporter Kim Jung-wan] With the prices of ramen and kimchi rising one after another, the burden of food prices on ordinary people's tables is deepening. Among self-employed individuals, some are giving up on making kimchi for the winter and reducing the variety of side dishes, while the government has begun inspecting price hikes in the food industry, including ramen.

According to recent reports from the food industry, Ottogi announced that it will raise the prices of ramen products by an average of 11% starting from the 10th of next month. Accordingly, Jin Ramen will increase from 620 won to 716 won, a 15.5% rise; Jin Bibimmyun will go up from 970 won to 1070 won, a 10.3% increase. Jin Jjambbong will also rise from 1495 won to 1620 won, an 8.4% increase, and Cup Noodles will increase from 1280 won to 1380 won, a 7.8% hike. This price adjustment by Ottogi is the first increase in about 1 year and 2 months since the last hike in August last year, which was the first in 13 years.

In addition, other food companies had previously announced price increases for ramen. Nongshim raised the shipment prices of major products including Shin Ramyun by an average of 11.3% starting from the 15th of last month. Paldo will also increase the prices of all ramen products by an average of 9.8% starting from the 1st of next month. The food industry explains that the price adjustments are inevitable due to rising raw material costs, sustained high exchange rates, and surging logistics and other domestic and international expenses.

This rise in ramen prices is interpreted as a consequence of the ongoing high inflation situation. According to the National Statistical Portal (KOSIS) of Statistics Korea, food prices last month rose by 8.4% compared to a year earlier, marking the highest increase in 13 years and 4 months since April 2009 (8.5%).

Cabbages, whose prices have risen sharply due to high inflation and adverse weather conditions, are displayed at a large supermarket in Seoul on the 23rd. [Image source=Yonhap News]

With the price of napa cabbage also soaring, the price of packaged kimchi has increased as well. According to the Agricultural Products Distribution Information (KAMIS) of the Korea Agro-Fisheries & Food Trade Corporation (aT), as of the 21st, the wholesale price of napa cabbage (10kg) was 37,940 won, a sharp increase of 154% compared to the same period last year (14,900 won). Accordingly, CJ CheilJedang raised the price of its 'Bibigo' kimchi by an average of 11% starting from the 15th of last month, and Daesang will increase the price of its 'Jongga Jip' kimchi by an average of 9.8% starting from the 1st of next month.

There are also forecasts that the upward trend in food prices in the second half of the year will be difficult to control. Although the government mentioned the possibility of a 'price peak' in September to October, the Bank of Korea expects that the peak may be delayed compared to previous forecasts and that a high inflation rate of 5-6% may persist. On the 8th, the Bank of Korea stated in its 'Monetary and Credit Policy Report' that "Considering future international oil price forecasts and base effects, the inflation rate is expected to peak in the second half of this year, but given the considerable upside risks, there is also a possibility that the peak may be delayed or that high inflation may continue."

Due to this situation, concerns among citizens seem to be growing. Mr. Shim, in his 60s, who runs a restaurant, said, "I gave up on making kimchi early this year," adding, "Even though the situation is difficult, kimchi and vegetable side dishes were always served, but now even these have become a burden."

Bang Gi-seon, the 1st Vice Minister of the Ministry of Economy and Finance, is presiding over the Emergency Economic Vice Ministers' Meeting held at the Government Seoul Office on the 23rd. [Image source=Yonhap News]

Meanwhile, the government has urged the food industry to minimize price hikes. On the 23rd, Bang Ki-seon, First Vice Minister of Strategy and Finance, held an emergency economic vice ministerial meeting at the Government Seoul Office and said, "Regarding the recent price increases in ramen and snacks by the food industry, the Ministry of Agriculture, Food and Rural Affairs is monitoring related trends," adding, "Next week, we plan to strengthen communication with the industry for price stabilization through meetings with major food companies." He continued, "Considering the recent stabilization of grain prices, we ask the industry to demonstrate wisdom for coexistence by minimizing price increases."

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