Food industry raises prices after being constrained by inflation control

South Korean food manufacturers are finally raising prices after absorbing prolonged cost increases driven by a high exchange rate and global instability. Companies like CJ CheilJedang, Ottogi, and Sajo are implementing price adjustments on dozens of products this month.

CJ CheilJedang will increase prices by an average of 8% on 27 items, including its popular Hetbahn instant rice, dumplings, and grilled fish, starting July 30. Ottogi has already raised prices by up to 17% on 29 items such as curry, glass noodles, and ketchup since July 16. Sajo will follow suit on August 3, increasing prices on items like tuna cans and mackerel by up to 20%, and sauces and cooking oils by 12%.

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Food companies are highly sensitive to exchange rate fluctuations and global affairs because they import a significant portion of their main raw materials.

These companies had previously resisted price hikes to support the government's efforts to stabilize inflation. However, rising costs for raw materials, packaging, labor, and energy have become unsustainable. The weakening won against foreign currencies makes imported ingredients more expensive, while global events like the conflict in Iran have increased shipping and energy costs.

Industry insiders note that these price increases are not arbitrary but a reflection of long-term cost pressures. With continued increases in minimum wage and logistics expenses, the financial strain on food companies is expected to persist.

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Additional cost factors such as minimum wage increases and logistics burdens remain, so the industry's difficulties will continue for the time being.