Seoul: Ottogi Corp., a major South Korean food company, announced plans to increase the prices of its "ramyeon," or instant noodle, products next month to accommodate the growing costs of raw materials. The company revealed this decision on Thursday, emphasizing the need to adjust retail prices due to economic pressures.
According to Yonhap News Agency, Ottogi will implement a price hike on 16 of its ramyeon products, averaging a 7.5 percent increase, starting April 1. The company specified that the price of Jin Ramen, their most popular product, will rise to 790 won (US$0.54) from the current 710 won. Meanwhile, Odongtong Myon will see a price increase to 836 won from 800 won.
Ottogi explained that the price adjustments are necessary to address the South Korean won's depreciation against the dollar, rising raw material costs, and increased logistics and labor expenses. The depreciation of the won has particularly impacted the cost of importing essential ingredients like palm oil and starch.
The announcement follows a similar move by Ottogi's larger competitor, Nongshim Co., which raised the prices of 14 ramyeon products by 7.2 percent and three snack products by 7.4 percent from March 17. These price increases were attributed to the same economic challenges.
Meanwhile, Samyang Foods Inc., known for its "Buldak" spicy ramyeon, has stated that it does not plan to raise prices at this time.