Even Gochujang... Dining Out Prices Expected to Rise Moderately

Chili Peppers and Seasoning Sauce Up to 9% Increase
Instant Rice 11%·Canned Goods Up to 42%↑
When Processed Food Price Hikes Are Reflected
Next Month, Dining Industry Expected to Raise Prices Significantly

[Asia Economy Reporter Seungjin Lee] The price hike relay among major food companies continues into the new year. Even the prices of gochujang and seasoning sauces, which are basic ingredients in cooking, have risen, leading to an increase in dining-out costs.

Gochujang and Seasoning Sauces Also Rise

According to the food industry on the 24th, CJ CheilJedang recently raised the prices of five types of gochujang, including the ‘Haechandle’ brand’s ‘Taeyangcho Gold Gochujang Made with Our Rice,’ by an average of 9%. They also increased the prices of four types of seasoning sauces under the ‘Baeksul’ brand?beef bulgogi seasoning, beef rib seasoning, pork bulgogi seasoning, and pork rib seasoning?by an average of 6%. The representative product, ‘Haechandle Taeyangcho Gold Gochujang Made with Our Rice 1kg,’ rose from 14,700 won to 16,000 won, an 8.8% increase.

Daesang will raise the prices of its Chung Jung One gochujang products starting from the 1st of next month. This will be the first increase in 2 to 6 years depending on the product, with an average hike of 7%. A Daesang official stated, "Due to the significant rise in dried chili prices and increases in raw material costs and labor expenses, the price hike was unavoidable."

Price increases in the food industry have continued since the new year. CJ CheilJedang, Ottogi, and Dongwon F&B raised the prices of instant rice by 6 to 11%. Sempio Foods raised the prices of 12 types of side dish canned products by an average of 35% last month, and the prices of four types of canned mackerel pike and mackerel products increased by an average of 42%.

Domino Effect of Price Hikes Inevitable in the Dining Industry

This round of price increases is expected to act as a catalyst for rising dining-out costs. Prices of major ingredients have been soaring for months. The retail price of 20kg of rice has long surpassed the all-time high of 60,000 won, and green onions and onions are more than three times as expensive compared to last year, making price hikes in the dining industry inevitable.

Burger prices have already increased. McDonald’s will raise prices on 30 items, including 11 types of burgers, by 100 to 300 won starting from the 25th. Lotteria raised prices on 25 products, including burgers and desserts, by 100 to 200 won from the beginning of this month.

In 2018, when the minimum wage rose sharply, the dining industry raised food prices significantly, and it is expected to do so again this year. According to the Korea Consumer Agency’s Chamgagaek, dining costs for dishes such as ‘kimchi stew set meal,’ ‘knife-cut noodles,’ ‘jajangmyeon,’ and ‘gimbap’ rose by an average of 300 won compared to the same period last year, but since the price hikes by processed food companies have not yet been reflected, prices are expected to rise sharply next month.