South Korea sees a wave of food price increases; companies may take advantage of political turmoil to raise prices

McDonald's Korea has announced a price increase for 20 products, ranging from 100 to 300 won, resulting in an average increase of 2.3%. This is the company's second price hike in less than a year. The price increase will affect various food companies, including Nongshim, CJ CheilJedang (Bibigo), SPC Group (Paris Baguette), CJ Group (Tous Les Jours), and Starbucks. The government has noted over 10 food production companies have increased prices this year, attributing the price hikes to the temporary gap in the operation of the national government. The National Statistics Bureau also reported a 2.9% year-on-year increase in the price of processed food in February, the highest rise in nearly 13 months.

McDonald's Korea said on the 14th that the prices of 20 products will be increased by 100 to 300 won (about RMB 0.5 to 1.5) from the 20th, with an average increase of 2.3%. The signature product "Big Mac Meal" has increased from 7,200 won to 7,400 won. It has been less than a year since McDonald's raised the prices of 16 products in May last year. Nongshim will increase the prices of 17 products including instant noodles and snacks from the 17th, and the price of Shin Ramyun will be adjusted back to 1,000 won in June 2023. CJ CheilJedang has raised the prices of 20 products under its brand Bibigo dumplings from this month. The prices of various products have also been raised. Paris Baguette under SPC Group and Tous Les Jours under CJ Group have also raised the prices of cakes and bread. In addition, many coffee chain brands such as Starbucks have raised prices since January. Some opinions criticize that food companies have taken the opportunity to raise prices when there is a ...