President Lee's Focus on Ramen Prices: Symbol of Ordinary People and Accelerating Increases [Why&Next]

Ramen Prices Up 5.1% in April, 6.2% in May
Processed Foods May Drive Overall Inflation
Calls to "Identify Reasons Behind Price Increases"

On June 9, President Jae Myung Lee's comment at the 2nd Emergency Economic Inspection Task Force (TF) meeting?"Is it true that a single pack of ramen now costs 2,000 won?"?is being interpreted as having political and policy implications that go beyond a simple observation about prices. As ramen, a staple food for ordinary citizens, has seen a sharp price increase recently, many see this as the president signaling his determination to stabilize overall "food prices" that the public actually feels, using the symbolic equation "ramen price = ordinary people's economy."

The new administration's focus on price stabilization policies immediately after taking office was prompted by a clear rebound in the prices of key daily necessities following the declaration of martial law in December last year. According to Statistics Korea, out of 73 processed food items, 52 items (71.2% of the total) saw a price index increase in May compared to November last year, just before the martial law situation.

Ramen is a representative example. According to the cost of living index compiled by Statistics Korea, the rate of increase in ramen prices remained negative year-on-year for six months, from June last year (-5.0%) to November before martial law (-0.6%), indicating price stability. However, immediately after martial law was declared in December last year, ramen prices shifted to a 0.2% year-on-year increase, and the pace of increase became more pronounced in 2025.

In particular, ramen prices rose by 5.1% in April and by a striking 6.2% in May, more than three times the overall consumer price inflation rate of 1.9% during the same period. While overall prices remained stable, ramen prices have been rising at an accelerating pace.

President Jae Myung Lee's Remarks at the 2nd Emergency Economic Inspection Task Force Meeting

(Seoul=Yonhap News) Photo by Hong Haein = President Jae Myung Lee is speaking at the 2nd Emergency Economic Inspection Task Force (TF) meeting held at the Yongsan Presidential Office building in Seoul on June 9, 2025. [Presidential Office Press Photographers Group] hihong@yna.co.kr (End)

Why Did President Jae Myung Lee Choose "Ramen"?

Ramen is a highly symbolic item as a food for ordinary people and is also a representative processed food. The government has generally viewed a reduction in ramen prices as a potential driver for actual price reductions in other processed foods. The prices of processed foods are closely linked to fluctuations in international raw material prices, such as grains, crude oil, and palm oil. When the prices of key raw materials rise, the prices of consumer products typically increase with a lag of one or two quarters. According to the United Nations Food and Agriculture Organization (FAO), the global food price index in May was recorded at 127.7 points, down 0.8% from the previous month.

After switching to an upward trend in February, the index had risen for three consecutive months before turning downward. International wheat prices declined slightly due to weakening demand and improved harvests in the Northern Hemisphere. However, the rise in processed food prices is likely to continue for some time. Once the prices of processed foods go up, they rarely come down easily, which means they have a prolonged impact on overall inflation.

The president's remarks about ramen prices are seen as pointing out that, even if statistics show price stability, it is meaningless if the public does not actually feel it. Kim Bumseok, the First Vice Minister of Economy and Finance (acting minister), also said, "Due to political uncertainty, some prices had been suppressed, but there have been significant increases in processed foods such as beer and ramen."

The Structure That Makes Ramen Prices Hard to Lower: "Need to Identify Why Prices Are Rising, Not Just the Final Price"

The food industry argues that high fixed costs?such as marketing expenses, logistics costs, and labor costs?make it difficult to lower the supply price, which is why ramen prices rarely decrease once they go up. Considering these various factors, even a temporary drop in international grain prices does not easily lead to a decrease in the retail price of ramen.

Attempts to control ramen prices were made under the previous administration as well. Former Deputy Prime Minister and Minister of Economy and Finance Choo Kyungho's direct criticism of the industry in 2023 is a representative example. At the time, Choo pointed to the decline in international wheat prices and urged the ramen industry, saying, "I hope manufacturers will respond appropriately by lowering prices that had been raised due to flour costs." It was considered highly unusual for a deputy prime minister to directly name a specific industry and pressure them to lower prices.

However, there are also criticisms that excessive government intervention in perceived price increases has its limits. Kang Sungjin, a professor of economics at Korea University, emphasized, "Perceived prices are those that rise in the market, and it is very difficult for the government to forcibly bring them down. The problem is not simply that the final consumer price has gone up. It is more important to understand the overall reasons for price increases, such as exchange rates, oil prices, and labor costs."