Twenty major South Korean food companies will cut prices on 4,765 products, including instant noodles and dairy items, by as much as 64% ahead of the Chuseok holiday. The move comes as processed food inflation picks up again and the government presses the industry to hold prices steady and expand supply during the holiday period.
The Ministry of Agriculture, Food and Rural Affairs said it discussed the plans on the 8th at a meeting with major companies held at the Korea Food Industry Association, titled a roundtable on Chuseok livelihood stability and expanding K-food exports. The companies agreed to run their own promotions this month on products in 27 categories at hypermarkets, convenience stores and online malls.
Coffee, tea and beverages account for the largest share at 1,189 items. They are followed by dairy products at 653, snacks and cereals at 442, seasonings and sauces at 427, and ready-to-eat meals at 346. For instant noodles, Nongshim, Samyang Foods, Ottogi and Paldo will cut prices by up to 50%. Kimchi and pickled vegetables will be discounted by as much as 52%, and fermented soybean pastes and sauces by 58%. Some beverages and juices will sell for up to 64% less on online malls.
The scale is larger than a year earlier. At last year's Chuseok, 16 companies ran promotions covering 2,485 products. This year, 20 companies are taking part and the number of products has risen 92% to 4,765. That is also slightly more than the 19 companies and 4,755 items outlined when the government announced its Chuseok livelihood stability measures on the 1st of this month.
The promotions come as processed food prices continue to climb ahead of the holiday. Consumer prices for processed foods rose 1.5% in August from a year earlier, according to the National Data Office, widening from July's 1.0% gain by 0.5 percentage points. That contrasted with a 3.5% drop in agricultural and livestock prices in the same month. The agency said the increase reflected a series of recent factory-price hikes on processed foods feeding through to retail prices in stages.
The ministry said it would continue supporting the industry in lowering cost burdens through tariff quotas, financing for raw material purchases and regulatory improvements. It asked companies to expand discounts on processed foods and gift sets, where holiday demand is concentrated, and to manage production and distribution so that peak-season supply is not disrupted.
"The government will spare no effort in providing multifaceted support to ease the industry's cost burden," said Jung Kyung-seok, director general for food industry policy at the ministry.
The meeting also covered plans to expand K-food exports. The government and the industry agreed to sustain growth by developing new products tailored to local markets, expanding overseas distribution networks and pursuing marketing tied to the Korean Wave. Exports of agricultural food and agriculture-related industry goods reached $8.32 billion through July, up 5.3% from the same period last year and a record high.
