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Buldak hike coming? Korean exporters now eye price markups after tariff-fueled front-loading

Published: 23 Aug. 2025, 07:00 Updated: 24 Aug. 2025, 16:09

CHO YONG-JUN
[email protected]

The inside of Samyang Foods' second plant in Miryang, where the popular Buldak Ramen noodles are manufactured [SAMYANG FOODS]

[NEWS ANALYSIS]

When the Donald Trump administration first announced a reciprocal tariff on Korean goods on April 2, Samyang Foods, the company behind Buldak instant noodles, scrambled to ship as many packages as possible to the United States. Its exports to the country rose 38 percent from the previous year in May and 79 percent in June. It wasn't alone in this: Many exporters pushed shipments forward earlier this year to avoid the tariff deadline, which similarly inflated their spring and early summer numbers.

It's now been two weeks since the United States' 15 percent reciprocal tariffs came into play, and Korea's two staple exports, cosmetics and instant noodles, have not seen a noticeable price hike — yet. Experts say this honeymoon is a product of strategic planning, and it may be a temporary state of affairs. How long ramyeon enthusiasts have to stock up on their favorite noodles may depend on one thing: how long manufacturers' stockpiles last.

“As the implementation of the initial 25 percent reciprocal tariff was slowed down in April, May and June, companies temporarily advanced their export orders,” the Ministry of Agriculture, Food and Rural Affairs said Thursday. Such orders “decreased in July as the trade deals were sealing off and firms decided to hold on.”

The price of Samyang Foods' Buldak Spicy Chicken Noodle Carbonara Flavored Ramen stayed rock steady at $6.88 at Walmart, and Beauty of Joseon's face cleanser gel has held at $13 in the last year — with some flash sales here and there — according to Amazon and Walmart price trackers.

Some companies insist that's not going to change. Goodai Global, which owns Beauty of Joseon, told the Korea JoongAng Daily that it has “no concrete plans” to raise its prices from pre-July levels, despite the new reciprocal tariff and Tuesday's massive expansion of Trump's 50 percent levy on steel and aluminum, which are used in the springs and pumps of makeup dispensers. “Because there aren’t many products with aluminum, it likely won’t affect the industry much,” said the spokesperson, emphasizing that “tariff issues change from moment to moment” and that the company was still in the process of confirming and checking with relevant parties."

But shipment volume tells another story. Korean exports of agricultural and food products to the United States declined for the first time in 26 months in July, falling 6.7 percent from the previous year to $139 million, according to the Trade Statistics Service. Instant noodles, in particular, recorded an export of $23 million in March — before U.S. President Donald Trump announced a 25 percent reciprocal tariff on Korean goods —, $25 million in April, $23 million in May and $29 million in June before plummeting to $14.28 million in July.

Beauty of Joseon's sunscreen [BEAUTY OF JOSEON]

A spokesperson for another K-beauty manufacturer, speaking on condition of anonymity due to the sensitivity of the information, also disagreed. “You can’t say that there won’t be any effect on K-beauty firms, especially in the case of sprays,” the spokesperson said. Samyang Foods also admitted that “it seems inevitable to increase the supply price of certain items.”

Munseob Lee, a professor of economics at the University of California, San Diego, also doesn't buy it. Both the 15 percent base tariff and the expansion of the steel and aluminum levy, the professor emphasized, are “still a drag.”

“In the short run, firms may hold prices steady and absorb part of the cost, but over time, higher prices or changes in packaging are hard to avoid,” Lee said. “If the 15 percent tariff on consumer goods stays in place, companies will eventually have to pass some of that on to U.S. consumers.”

“If tariffs remain for the long haul,” Lee insisted, “U.S. consumers will ultimately feel the impact through higher prices.”

BY CHO YONG-JUN [[email protected]]