March 10, 2026
SEOUL – South Korean makers of instant noodle are facing mounting pressure to cut retail prices, as government antitrust investigations into key ingredients such as sugar and flour trigger markdowns across the supply chain.
Seven Korean flour millers — CJ CheilJedang, Daehan Flour Mills, Sajo Dongaone, Daesun Flour Mills, Samyang Corp., SamHwa Flour Mills and Hantop — face antitrust proceedings over allegations they colluded to fix flour prices between 2019 and 2025. Potential penalties could reach as high as 1.2 trillion won ($807 million), according to industry estimates.
In a separate case last month, the Korea Fair Trade Commission fined three sugar producers a combined 408.3 billion won for colluding on sugar prices between 2021 and 2025. Investigations into starch syrup suppliers remain underway.
The probes have already pushed sugar and flour prices down by about 5 to 6 percent. Bakery chains Paris Baguette and Tous Les Jours have lowered prices on select items, raising the question of whether ramyeon — one of the country’s most closely watched consumer staples — will be next.
Last week, the Ministry of Agriculture, Food and Rural Affairs convened a meeting with leading instant noodle firms — Nongshim, Otoki, Samyang Foods and Paldo. Officials said the meeting aimed to assess external factors such as the situation involving Iran and to monitor raw material costs.
The KFTC also met with its interministerial task force on price stability, announcing plans to closely monitor wholesale, retail and unit prices for instant noodles, snacks and baked goods.
Industry officials, however, say meaningful price cuts for ramyeon manufacturers remain difficult to justify because flour accounts for only a small share of production costs.
“Flour typically represents less than 10 to 20 percent of total production costs,” said one food industry official. “Companies also have to consider volatile expenses such as exchange rates, energy and logistics.”
External uncertainties are further complicating pricing decisions. Rising geopolitical tensions in the Middle East have pushed global oil prices higher, threatening to increase transportation and packaging costs. At the same time, a stronger US dollar could raise the cost of imported ingredients.
“Despite some reduction in raw material prices, rising labor and other costs make it difficult to lower prices,” another industry official said. Officials added that if government scrutiny over food prices intensifies, the industry may ultimately have little choice but to respond.