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[Alpha Biz=(Chicago) Reporter Kim Jisun] While the government emphasizes price stability day after day, Nongshim, the No. 1 ramen industry, said on the 16th that it is not considering price cuts.
The Ministry of Agriculture, Food and Rural Affairs visited Nongshim's headquarters on the 15th and asked them "to actively cooperate in stabilizing prices of ramen and snacks and easing sensible prices."
He called on Nongshim to cooperate in stabilizing prices, saying he will consider applying the quota tariff next year to potato starch and denatured starch, whose prices have risen 30 percent in a year.
Although Nongshim did not announce its plan to raise prices, industry watchers say that the government's demand to stabilize prices is actually pressure to cut prices.
In response, a Nongshim official said, "We have no plan to raise prices," adding, "We have already cut prices once, and labor and electricity bills have risen, making it difficult to cut them further."
Ottogi and Samyang Foods also said they have no plans to raise ramen prices at the moment and are not considering cutting them.
However, stock prices in the ramen industry are falling amid concerns that they will not be able to withstand the government's pressure in the stock market. Nongshim's fall was the biggest with 3.05%, while Samyang Food and Ottogi also closed down 1% and 0.51%, respectively.
Ramen companies had previously lowered product prices under government pressure. In July, the government called on the ramen industry to cut prices, citing falling international wheat prices, and when flour mills cut the price of flour, Nongshim lowered the prices of its flagship products Shin Ramyun and Saewookkang by 5.0% and 6.7%, respectively.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
