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Ottogi Retracts Planned Price Hike on 24 Products Following Government Pressure

South Korea
o 007310.KO Mid and Small Cap 2000 Consumer 250
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In a surprising reversal, Ottogi has decided to retract its earlier decision to raise prices on 24 major products, which included popular items like ketchup and curry, slated to take effect from December 1.

The initial plan involved increasing the prices of key products sold at convenience stores, such as powdered curry and powdered black bean paste (100g), by 12%, from 2,500 won to 2,800 won. Home convenience meals (HMR) like 3-minute curry and 3-minute beef curry, along with black bean paste (200g), were also set for a 10% hike, from 2,000 won to 2,200 won. Furthermore, tomato ketchup (300g) was scheduled to see a 13.2% increase, from 2,650 won to 3,000 won.

Following the announcement of the price increase, Ottogi sent an official letter to convenience stores notifying them of the withdrawal of the plan this afternoon. The decision to retract the price hike is seen as a response to government pressure amid concerns about the economic challenges faced by the public. The government has recently emphasized monitoring daily price trends for key agricultural products and launched an investigation into ‘shrinkflation’ for 209 processed foods—a tactic involving reducing product capacity rather than raising prices.

An Ottogi official stated, “This decision is in alignment with the government’s commitment to stabilizing people’s livelihoods during challenging economic conditions and maintaining price stability.” The move reflects a broader effort to address public concerns and align with governmental initiatives regarding the economic well-being of consumers.

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