On Friday, Ottugi, a South Korean food manufacturing firm said that it will increase the prices of its instant ramen by 11.9 percent on average from next month.
Ottugi said that the increase will be applied to their ingredient products like flour and palm oil, citing that labor costs behind the decision as the reason.
The price increase on ramen prices was last announced by the company in April 2008, or 13 years ago.
One of the company’s flagship instant noodle products, Jin Ramen, will undergo a 12.6 percent price increase, making it worth 770 won from 684 won.
An 11.6 percent price increase will meanwhile be applied to Snack Ramen’s price, making it 676 won from the present 606 won.
Ottugi has planned to increase their products’ prices in February but never pushed through as it sparked backfire.
An 8.7 percent price increase will be applied to Yukgaejang cup noodles. It will be sold for 911 won from the present 838 won.
Other companies producing instant noodles are also anticipated to increase their prices following Ottugi’s move.
Since 2016, the largest instant noodle manufacturer Nongshim has not released any price increase. Samyang Foods also has not increased prices since 2017, The Korea Herald reported.
The initiative of Ottugi to increase prices of ramen sparks a change in the ramen market strategy, Han Yoo-jung from Daishin Securities said, saying it can pave way towards a “meaningful rise in corporate value.”