Sajo to raise prices on canned foods and cooking oils as food inflation fears broaden

Consumers are set to face higher grocery bills as Sajo, a major Korean food manufacturer, will raise prices on key processed food products next month, fueling concerns that other food manufacturers will follow suit with similar increases.

Sajo has completed negotiations with major retailers, including hypermarkets, to raise wholesale prices for items such as canned goods, fermented pastes and cooking oils starting Aug. 3, according to the food and retail industry on Thursday. 

The move comes as cost pressures continue to mount across the industry.

Prices for canned tuna will increase by 10 percent, while other canned seafood products such as saury and mackerel will rise by 20 percent.

Fermented soybean products, including gochujang, doenjang (soybean paste) and ssamjang (a mix of gochujang and doenjang), as well as sesame oil and perilla oil, will also rise by 12 percent.

Sajo had also already raised prices for fish cakes and imitation crab products by between 6 percent and 7 percent on July 2.

Industry officials expect Sajo's move to lead to similar price increases by rival food manufacturers, as companies are all dealing with higher raw material costs and logistics expenses.

“Manufacturing costs and logistics expenses have reached their limit, and rival companies are weighing both the timing and the scale of price increases,” an industry source said.

Food and beverage companies rolled out a series of price hikes before and after the local elections on June 3.

Food company Otoki raised wholesale prices for 29 products, including curry, glass noodles, ketchup and pepper, starting Thursday. Pepper products rose by an average of 17 percent, glass noodles by 10 percent and curry and ketchup products by 6.1 percent each.

Lotte Chilsung Beverage increased wholesale prices by an average of 5.3 percent for 44 products across 12 of its brands, including Chilsung Cider, on June 26. It marked the company's first price adjustment in about two years since June 2024.

Coffee franchise Mega MGC Coffee raised prices by 200 won (14 cents) for three “Halmega Coffee” menu items — its instant coffee mix blended drinks — beginning June 19. Another coffee franchise, Ediya Coffee, also increased prices for stick coffee and instant coffee mixes by between 4.3 percent and 15.2 percent starting in May.

Theborn Korea, a food and beverage company led by celebrity restaurateur Paik Jong-won, raised prices by an average of about 11 percent for selected menu items, toppings and beverages across 11 restaurant brands, including Yeokjeon Udon, Mijeong Guksu, Rolling Pasta and Saemaeul Sikdang, since June 9.

Harim, Korea’s largest poultry-processing company, increased prices by between 100 won and 300 won for refrigerated processed food products, including “hotbars,” which are ready-to-eat meat snacks on a stick, and chicken breast products sold at convenience stores, starting July 1.

Before the June 3 elections, coffee franchises TheVenti, Coffee Bean and fast-food chain Lotteria also joined the wave of price increases in late May and early June.

The government expects food and dining prices to continue rising in the second half of the year as the weaker won, higher prices for imported raw materials, rising labor costs and logistics expenses continue to put pressure on manufacturers.

In turn, consumers are likely to face higher food costs for the time being.

BY JEONG JAE-HONG [[email protected]]