[Asia Economy Reporter Seungjin Lee] Ottogi will raise the prices of major ramen products, including Jin Ramen, by an average of 11.9% starting August 1. This is the first increase in 13 years and 4 months since April 2008.
The representative product Jin Ramen (mild/spicy) will increase from 684 won to 770 won, a 12.6% rise; Snack Ramen will go from 606 won to 676 won, an 11.6% increase; and Yukgaejang (cup noodles) will rise from 838 won to 911 won, up 8.7%.
Considering the impact of ramen prices on consumer inflation, Ottogi has been making efforts to suppress price increases through automation of facilities, cost reduction of raw materials and packaging, and utility cost savings. Although ramen prices have been frozen for 13 years since the last increase in April 2008, recent rises in food raw material prices such as flour and palm oil, as well as labor costs, have made a price increase unavoidable.
Regarding this price hike, an Ottogi official explained, "This is not simply for cost improvement purposes, but we plan to use it as an opportunity to contribute to improving human dietary life through better quality development and production by investing in facilities and increasing personnel."
He added, "Just as Ottogi ramen has provided good quality and price benefits so far, we will continue to repay customers with not only price but also better products and services."
Since raising ramen product prices in 2008, Ottogi made a bold price cut of up to 6.7% in 2010 to support the low-income economy. Since then, prices have remained frozen for 13 years until 2021.
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