[Issue Video] From Ramyeon to Hamburgers... Popular Snacks See Prices Rising One After Another

Expert: "Possibility of Price Increases Remains... But the Rate of Rise Will Slow"

[Asia Economy PD Yoon Jin-geun] Prices of foods commonly enjoyed by the general public, such as ramen, snacks, and fast food, are rising one after another.

Nongshim announced that starting from the 15th of next month, after the Chuseok holiday, it will raise the prices of ramen and snack products by an average of 11.3% and 5.7%, respectively. Among Nongshim ramen, Shin Ramyun will increase by 10.9%, priced at 820 won at large supermarkets, and Saewookkang will rise to 1,180 won at large supermarkets.

The fast food industry has also raised product prices. McDonald's increased the prices of major menu items by an average of 4.8% starting from the 25th. The price of the Big Mac single item, one of the representative menu items, rose from 4,600 won to 4,900 won.

Burger King raised product prices by 4.5% in July, and No Brand Burger recently increased prices by 5.5%. KFC raised prices of major products by about 200 to 400 won on the 12th of last month. Domino's Pizza uniformly raised prices of 26 types of pizza on the 12th. Franchise pizza companies such as Pizza Hut, Mr. Pizza, and Papa John's also adjusted their prices once this year.

Recently, major fast food franchise companies in Korea have raised the prices of key items. The photo shows a hamburger shop in downtown Seoul. Photo by Yonhap News

Experts cite factors such as the rise in the won-dollar exchange rate and oil prices as reasons for the price increases. The won-dollar exchange rate recorded 1,333.5 won during trading on the 22nd. It is the first time in about 13 years and 4 months since April 2009 that the won-dollar exchange rate exceeded 1,330 won. Additionally, although international grain prices have been declining since June, the effects of the significant rise until now are still lingering.

Professor Heo Jun-young of the Department of Economics at Sogang University said, “Currently, the exchange rate is rising somewhat rapidly, so there is a short-term possibility that prices of imported raw materials or import prices will increase.” He added, “However, the impact on prices (such as ramen) due to raw material prices will be less than it was 2 to 3 months ago.”