High-Pressure Price Control Halts New Food Price Hikes at Year Start
Creatrip Team
2 months ago
Korean food manufacturers have largely stopped the usual year-start 'domino' of price increases as the government steps up inflation control ahead of the Lunar New Year (Seollal). Despite persistent cost pressures from a high won-dollar exchange rate, rising import ingredient prices, labor and logistics costs, firms are reluctant to raise consumer prices amid intensified government requests to curb processed food price rises and closer market scrutiny (including investigations into sugar and wheat markets). Industry executives say the combined effects of regulatory pressure and weak consumer demand make price hikes risky; many companies plan to watch the market until after the June local elections, focusing instead on cost-cutting and efficiency. Financial results already show margin strain, with some firms posting smaller sales growth but sharply reduced operating profits.
