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Shocked by ramyeon prices, president calls for relief for costs of everyday goods

Published: 09 Jun. 2025, 18:57 Updated: 09 Jun. 2025, 19:40

JIN MIN-JI
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President Lee Jae-myung speaks in an emergency economic task force meeting with officials held at the presidential office in Yongsan District, central Seoul, on June 9.[JOINT PRESS CORPS]

President Lee Jae-myung expressed alarm over rising food prices — specifically the cost of ramyeon — following a series of hikes by major food companies over the recent months.

"I've been told that price increases have been rapid recently," Lee said in the emergency economic task force meeting with officials. "Is it true that a single pack of instant noodles costs 2,000 won [$1.50]?" he asked.

"Due to political uncertainties, food prices rose steeply centered on processed food, like beer and instant noodles," said acting Minister of Economy and Finance Kim Beom-seok.

More than 60 food and beverage and restaurant businesses have raised prices over the past six months, from December.

The price increase was led by Dongsuh Foods, whose instant coffee jumped nearly 20 percent in the period. Hite Jinro also raised the factory prices of its beers, like Terra and Kelly, by an average of 2.7 percent.

“We take seriously the reality of increased pressure with a surge in the prices of daily necessities,” Lee posted on social media.

“We will mobilize all available measures to stabilize prices and help the economy recover. We will closely monitor price movement and ensure we are prepared to take immediate action if necessary,” Lee added, saying the increasing cost of living is causing “too much pain.”

Kim also noted a rise in the prices of chicken and eggs since the outbreak of avian influenza in Brazil, one of Korea’s major poultry import sources.

The government has imposed restrictions on chicken imports from avian flu-affected areas in Brazil.

Korea's consumer prices grew 1.9 percent from a year earlier in May, according to Statistics Korea data. The figure had remained above the Bank of Korea's 2 percent target for four straight months through April before easing last month.

Lee also called for the prompt formulation of a supplementary budget for economic recovery and consumer spending stimulation.

“Lee instructed that support for vulnerable groups and small business owners be prioritized,” said presidential spokesperson Kang Yu-jung. “He emphasized the importance of discovering core businesses for the extra budget, and for a thorough review and coordination to ensure the measures bring tangible results.”

Lee proposed a second supplementary budget of at least 30 trillion won as part of his presidential campaign pledges to boost consumer spending and support small businesses in various forms, like the issuance of regional gift certificates.

The proposal came despite a continuing tax revenue shortfall that is expected to persist through 2025, which would mark the third consecutive year of deficit.

Rep. Jin Sung-joon, policy chair of the ruling Democratic Party, said in a recent radio interview that the party is considering a supplementary budget worth 20 to 21 trillion won, noting 14 trillion won in spending, out of its initial proposal of 35 trillion won, was already confirmed in the first supplementary budget.

Korea, Asia’s fourth-largest economy, saw its economy shrink 0.2 percent in the first quarter from the three months prior as exports and consumption stalled amid concerns over U.S. tariffs. It was the first contraction since the fourth quarter of 2020.

The economy is projected to grow a mere 0.8 percent this year, according to the Bank of Korea. The other times the growth rate fell below 1 percent were during the global financial crisis in 2008 at 0.8 percent and the Covid-19 pandemic in 2020, which recorded negative 0.7 percent growth.

Lee will attend the summit of the Group of Seven advanced countries in Alberta, Canada, from June 15 through 17, where he may hold bilateral talks with U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba.

BY JIN MIN-JI [[email protected]]