Firms to cut prices on processed foods by up to 50% as part of government push to ease inflation

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Firms to cut prices on processed foods by up to 50% as part of government push to ease inflation

Published: 07 Jul. 2025, 17:01 Updated: 07 Jul. 2025, 18:57

Audio report: written by reporters, read by AI

A customer looks at ramyeon (instant noodle) products stocked at a supermarket in Seoul on July 7. [YONHAP]

The government is partnering with major food and retail companies to launch extensive discount events for processed goods this month, aiming to alleviate the burden of rising food prices during the summer break season.

Large retailers and convenience store chains will cut prices by up to 50 percent on popular items such as ramyeon (instant noodles), bread and coffee, according to the Ministry of Agriculture, Food and Rural Affairs on Monday.

The move follows a meeting held by the Food Ministry with food and retail companies on Friday, where officials and industry representatives agreed to roll out the discount measures through next month.

It comes on the heels of the June consumer price index data, released last Wednesday, which showed that processed food prices jumped 4.6 percent year-over-year — the sharpest increase since November 2023.

A customer picks out instant coffee from the displayed brands in a supermarket in Seoul on July 7. [YONHAP]

The ministry said summer staples, including instant noodles, bread, ice cream, juice and samgyetang (ginseng chicken soup), would be included in the price cuts.

Shin Ramyun maker Nongshim plans to offer certain instant noodles at 16 to 43 percent off in supermarkets, while running buy-two-get-one-free deals at convenience stores. Its instant bibimmyeon (spicy and sweet cold noodles) brand, Baehongdong, will sell at up to 43 percent off through July 17.

Otoki will mark down some instant noodle products by 10 to 20 percent at large stores this month, alongside buy-one-get-one-free and two-for-one deals at convenience stores. Jin Ramen and Jjachelin cup noodles will be featured in the two-plus-one events, while select Paldo items will be discounted by up to 50 percent.

SPC will sell bread and hotteok (sugar-filled pancakes) at up to 50 percent off in supermarkets through July 17. Meanwhile, Dongseo Food will offer stick and canned coffee products at buy-one-get-one-free deals or up to 40 percent off.

CJ CheilJedang’s Bibigo and Daesang’s Jongga kimchi brands will also run buy-one, get-one-free or 30 to 35 percent off events online, on home shopping channels and in stores.

Processed bread and soup products are displayed at a supermarket in Seoul on July 7. [NEWS1]

The government said it would continue to monitor processed food prices in the next month and seek further discount events. It also pledged to maintain dialogue with the industry on challenges like expanding exports and stabilizing raw material supplies.

To help lower costs, the Food Ministry is maintaining tariff quotas for 21 imported food ingredients, including coffee and cocoa, and will extend a value-added tax exemption on those imports through the end of this year. It has also expanded support for food manufacturers’ raw material purchase funds.

Of the 73 major processed food items tracked in June, prices rose for 62 of them compared to the same period a year earlier. Dried squid surged 48.7 percent, sauces climbed 21.3 percent, tea rose 20.7 percent and chocolate increased 20.4 percent. Kimchi, coffee, seasoned gim (dried seaweed) and cereal all posted double-digit gains. Ramyeon was up 6.9 percent, while bread and sausages each rose 6.4 percent.

The ministry said higher costs for ingredients, labor and energy have weighed on food companies. But it noted that prices for palm oil, sugar and other key imports have stabilized recently, which could help ease future cost pressures.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]