Korean Food Companies Prepare for Post-Chuseok Price Hikes Amid Rising Costs
Korean food companies like OTOKI and Nongshim have announced plans to raise prices on various products despite the recent holiday discounts. Starting September 7th, OTOKI will increase its list prices for cup noodles by an average of 6.7% across 11 brands and 16 dumpling items by 7.7% across three brands. This move comes as the industry grapples with rising international raw material costs.
According to related industries, major food conglomerates have been participating in government-led holiday discount events. OTOKI is offering up to 50% off on 392 products, while CJ CheilJedang and Samyang Foods are also running discounts on various items. However, industry representatives warn that despite these efforts, prices may still rise due to external factors like international supply chain disruptions.
Wheat prices have surged by 14.5% in July, and companies like OTOKI are finding it difficult to delay price hikes any longer. As one representative noted, 'War, sharp exchange-rate swings, and high oil prices, every external variable is pointing toward price increases.'