Consumer Group "Ramen Price Increase Must Be Reconsidered"

[Asia Economy Reporter Lim Hye-sun] After Ottogi announced a price increase for ramen, the Korea Consumer Organization Council urged the company to withdraw the increase.

On the 22nd, the Korea Consumer Organization Council stated, "Ramen is an indispensable symbolic item in consumers' diets, to the extent that the government also uses ramen price stability as a basis for price stabilization." They criticized, "Companies do not react when raw material prices such as wheat flour and palm oil fall, but take advantage of periods when raw material prices rise above the average to increase consumer prices." Ottogi plans to raise the prices of major ramen products, including Jin Ramen, by an average of 11.9% starting next month. This is Ottogi's first ramen price increase in 13 years and 4 months since April 2008. Even with the price increase, Jin Ramen remains cheaper than competitors' products.

The council pointed out, "Although wheat flour and palm oil prices have been on an upward trend since this year, considering the raw material price fluctuations over the past 10 years, there is suspicion that companies pass the burden of price increases to consumers when raw material prices rise but absorb the benefits as corporate profits when raw material prices fall."

The council expressed concern, saying, "Ottogi's price increase could be a signal for a chain reaction of price hikes by other ramen manufacturers." They argued, "As a market-dominant business producing a staple food for ordinary people, Ottogi should take social responsibility and reconsider this price increase."

Meanwhile, the council is composed of 11 consumer organizations, including the Consumer Education Center, the Korean Women Consumers Union, and the Korea Consumer Federation.