Buldak spicy noodles may soon burn a hole in your wallet, thanks to tariffs

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Buldak spicy noodles may soon burn a hole in your wallet, thanks to tariffs

Samyang Foods' Buldak spicy noodle products are seen displayed at a large supermarket in Seoul on March 26. [YONHAP]

Samyang Foods' Buldak spicy noodle products are seen displayed at a large supermarket in Seoul on March 26. [YONHAP]

 
Your favorite Buldak noodles may soon burn a bigger hole not just on your tongue but also in your wallet, as its maker Samyang Foods eyes a price hike stateside to offset new U.S. tariffs.
 
Korean food exporters, including Samyang Foods, which enjoyed worldwide success due to its popular Buldak spicy noodle brand, are considering price increases in the U.S. market in response to rising reciprocal tariffs, even as their products enjoy global popularity.
 

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Korean instant noodles had previously been exempt from tariffs but have been subject to a 10 percent duty since April. Under the Korea-U.S. tariff deal finalized this week, that rate will increase to 15 percent starting Aug. 1.
 
“At current U.S. price levels, we can’t maintain profitability, so a price hike has become inevitable,” a Samyang Foods spokesperson said. “We will coordinate the rate, timing and scope of the increase in consultation with major local retailers such as Walmart and Costco.”
 
Samyang Foods currently produces all of its U.S.-bound exports at its plant in Miryang, South Gyeongsang. Overseas markets accounted for 77.3 percent of the company’s total sales of 1.73 trillion won ($1.24 billion) last year, with the Americas contributing about 386.8 billion won — or 28 percent of all exports.
 
Another food company, Daesang, which operates in the United States under its Jongga brand, is also reviewing pricing strategies while expanding local production. The company completed its Los Angeles plant in 2022 and acquired local manufacturer Lucky Foods in 2023 to bolster its U.S. production capabilities.
 
Visitors at a sauce exchange event hosted by Samyang Roundsquare, where customers can taste new sauces of the Buldak spicy noodle brand, are seen at a booth in New York City on Oct. 21, 2024. [SAMYANG ROUNDSQUARE]

Visitors at a sauce exchange event hosted by Samyang Roundsquare, where customers can taste new sauces of the Buldak spicy noodle brand, are seen at a booth in New York City on Oct. 21, 2024. [SAMYANG ROUNDSQUARE]

 
However, with export volume still exceeding local output, Daesang continues to ship some products from Korea.
 
“We plan to respond by expanding production lines at the LA plant,” a Daesang official said. “We’re also reviewing a range of countermeasures, including potential price adjustments.”
 
Meanwhile, CJ CheilJedang and Nongshim say they are well-positioned to weather the tariff changes thanks to their established U.S. manufacturing presence.  
 
CJ CheilJedang operates 20 local production sites, including those acquired through its purchase of frozen food maker Schwan’s. Nongshim runs a dedicated production facility for the North American market in California.
 
Golfers and tour officials browse Bibigo products at a booth set up at a PGA tour event on May 6, 2024. [CJ CHEILJEDANG]

Golfers and tour officials browse Bibigo products at a booth set up at a PGA tour event on May 6, 2024. [CJ CHEILJEDANG]

 


Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM KYUNG-MI [[email protected]]
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