[Yonhap]
[Yonhap]

The Korean Consumer Organizations Council on Thursday criticized a wave of recent price increases by food and beverage companies, saying it "strongly suspects" the hikes were driven by a desire to get ahead of anticipated cost increases or to shore up profitability.

In a statement released that day, the council said most companies had raised prices by an average of more than 5 percent, citing higher raw material and logistics costs — but questioned that rationale. "International raw sugar prices, which surged last year, have since fallen and stabilized, and wheat flour prices are also trending downward," it said.

The council also raised doubts about packaging material costs, noting that price increases for key inputs such as aluminum and naphtha were limited to a specific period. "We question whether consumer prices truly had to be raised given these raw material conditions," it said.

The council further pointed out that major companies posted higher sales and operating profit in the first quarter while their cost-of-sales ratios declined. "With profitability and cost burdens both improved compared to before, it is hard to find justification for raising consumer prices," it said.

The council also expressed concern that companies may have used their market dominance to set prices, given that the hikes targeted products with high market share. It strongly urged the food industry to reverse the increases, calling on companies to "stop ignoring consumers, stop adding to the financial burden on the public during a period of high inflation, and move toward being companies that grow together with the people."


spa@heraldcorp.com