"Ramyun Prices Must Drop"... Manufacturers "Reviewing Various Options" Following Deputy Prime Minister's Recommendation

Choo Kyung-ho "Price of International Wheat Should Be Lowered Accordingly"
Ramen Industry Ponders Measures Following Public Broadcast Mention
Challenges Include Rising Prices of Other Raw Materials and Energy

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho publicly expressed on the 18th that ramen prices should decrease based on the decline in international wheat prices, prompting the domestic ramen industry to become busy preparing countermeasures.

Ramen display at a large supermarket in Seoul [Image source=Yonhap News]

A Nongshim official stated that "there has been no official government request to lower ramen prices," but added, "We will review the matter from various angles in relation to the Deputy Prime Minister's remarks." Samyang Foods also said, "We will consider various ways to minimize the burden on the public." Other ramen manufacturers such as Ottogi and Paldo have not issued official statements, but since there is effectively a government-level recommendation to reduce prices, they are expected to examine the situation carefully.

Earlier, Deputy Prime Minister Choo appeared on KBS Sunday Diagnosis in the morning and, when questioned about the appropriateness of the ramen price increase, said, "Companies raised prices significantly in September to October last year, but the current international wheat price has dropped by about 50% compared to then," adding, "I hope companies adjust prices appropriately in line with the decrease in wheat prices." He also said, "The government cannot investigate costs one by one and control prices," and added, "It would be good if consumer groups exert pressure on this issue."

Ramen companies raised product prices in the second half of last year due to increased production costs, including major imported raw materials such as flour and palm oil, as well as logistics and labor costs. Nongshim raised the average ramen wholesale price by 11.3% in September last year, while Paldo and Ottogi also raised their product prices by 9.8% and 11.0%, respectively, in the same month. Samyang Foods increased ramen prices by an average of 9.7% in November last year.

On the other hand, the ramen industry is cautious, responding that it is not easy to lower product prices based solely on the decline in wheat prices. An industry official said, "The price of wheat supplied through flour mills remains high regardless of international market prices," adding, "Not only the price of flour but also other ramen ingredients such as starch and agricultural products, as well as energy prices, continue to rise, making it difficult to reduce product prices."

According to the Ministry of Agriculture, Food and Rural Affairs, wheat futures prices soared to $419 per ton in May last year and fell to $276 per ton in February this year, but remain higher than the average price of $201. The impact of fluctuations in wheat futures prices is reflected in import prices with a lag of 4 to 6 months. Wheat import prices reached a record high of $496 per ton in September last year and fell to $449 per ton as of February this year, but this is still about 1.6 times the average price of $283. Flour prices have also risen, with the consumer price index for flour increasing by 10.0% compared to a year ago and by 38.6% compared to two years ago last month.

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