Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Surprised by 2,000-won instant noodles, Lee gov't set to fight food price hikes
A woman shops for instant noodles at a supermarket in Seoul, Sunday. Yonhap
By Park Jae-hyuk
New administration urges swift action on soaring grocery costs
The fight against soaring food prices has become a top economic task for the newly launched Lee Jae-myung administration, with both the president and prime minister nominee targeting the increases as a major concern.
According to officials from food products and restaurant industries Thursday, Prime Minister nominee Kim Min-seok summoned representatives of food and restaurant business associations to a closed-door meeting in Seoul the following day.
It is rare for a prime minister nominee to hold such a meeting, which would usually be convened by the minister or vice minister of agriculture, food and rural affairs.
The meeting comes as a follow-up measure of Lee’s order to take all possible measures to stabilize commodity prices.
Then-presidential candidate of the Democratic Party of Korea Lee Jae-myung eats instant noodles at Gunwi Yeongcheon Service Area in Daegu during his election campaign in December 2021. Screenshot from Lee's YouTube
Earlier this week, Lee ordered economy-related ministries to present policies to curb inflation, expressing surprise over news reports that some instant noodle brands now cost more than 2,000 won ($1.50) per pack. His reaction prompted a 4.64 percent drop in the share price of Nongshim, which is more reliant on domestic sales than competitors such as Otoki and Samyang Foods.
“I take seriously the fact that the public is facing a significantly increased burden due to the sharp rise in the prices of daily necessities,” Lee wrote Monday on social media. “The government will closely monitor price trends and be ready to take immediate action if necessary.”
Kim also stressed the importance of food prices during a press conference Tuesday.
“There was intention behind Lee’s visit to a traditional market [last week] and his comments on inflation and instant noodle prices,” he said.
"Food prices, which people encounter every day, are a very important issue ... So I called for the meeting."
The Ministry of Economy and Finance said Thursday that it would announce price stabilization measures as soon as possible.
Data compiled by Statistics Korea showed that prices for 52 of 73 processed food items rose during the leadership vacuum caused by former President Yoon Suk Yeol’s martial law declaration in December 2024 and his impeachment in April.
As Nongshim, Otoki and Paldo raised instant noodle prices earlier this year, the average price of instant noodles in May was 6.2 percent higher than a year earlier, despite just a 1.9 percent increase in the overall consumer price index during the same period.
“Despite the decline in the price of wheat flour — the main ingredient in instant noodles — the consumer price index for instant noodles rose by 14.2 percent in May compared to three years ago,” the Korea National Council of Consumer Organizations said Thursday in a statement. “The index for bread also increased by 19.4 percent.”
The group criticized food companies for boosting prices to improve profits despite falling raw material costs.
However, food firms argue that the previous administration’s request to freeze product prices forced them to carry out price hikes belatedly this year, though they have remained cautious about commenting publicly on the new government’s stance.
In June 2023, then-Finance Minister Choo Kyung-ho urged food manufacturers to cut instant noodle prices, citing a drop in international wheat prices. Nongshim, Otoki, Samyang Foods and Paldo accepted the request at the time.
Some industry officials note that only a few premium instant noodle products are priced above 2,000 won, while most retail for around 1,000 won.
Still, with the Lee administration making food price stabilization a clear priority in response to public sentiment, observers expect a request similar to that of the previous government.
According to a survey conducted last month by the Federation of Korean Industries, 60.9 percent of 1,000 people selected price stability as the top economic priority for the new administration, ahead of job creation and housing supply. Among them, 35.9 percent specifically called for stabilizing the prices of agricultural products and everyday essentials.