Nongshim, Samyang to Trim Prices in South Korea Due to Pressure Arising from Inflation Woes

Nongshim, Samyang, Shin Ramyun and other leading brands of instant noodles and snacks in South Korea have announced price cuts after giving in to the pressure to do so. With this move, the prices of such products have decreased in the country.

According to The Korea Herald, Nonsgshim confirmed this week that it would reduce the prices of its popular ramen and snack products. The company said it was forced to drop its rates due to pressures from the government that has been urging major firms to lower food prices during this period of inflation that has been dragging on despite the efforts of the country's current administration.

Nongshim said it would lower the tag prices of its Shin Ramyun instant noodles and Shrimp Crackers by 4.5% and 6.9%, respectively. The noodle maker added that the reduced prices will take effect starting this Saturday.

This means that starting this weekend, consumers will be able to buy Shin Ramyun for only KRW950 from its original price of KRW1,000. For the crackers, it will now retail from KRW1,500 to KRW1,400.

The revised costs were revealed just a day after milling companies in the country agreed to trim their rates for wheat products by five percent. This is said to be the first time in the last 13 years that Nongshim implemented a price cut for its flagship instant noodle product. At any rate, with the expected new wheat prices, Nongshim estimated that it will be able to bring down its operational costs by as much as KRW8 billion per year.

For Samyang, in addition to its Samyang Ramen, it will slash prices of 11 other food products starting July 1 as well. Overall, shoppers can expect the brand's food items to be 4.7% cheaper.

"The price of flour supplied by domestic milling firms is expected to decrease by five percent from July," Korea Joongang Daily quoted an official of Nongshim as saying earlier this week. "This reduction in costs is projected to lead to annual savings of approximately 8 billion won for the company, while consumers are expected to benefit over 20 billion won in savings annually from the price reduction."

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