[DigitalToday reporter Shin-hye Ahn (안신혜)] South Korean makers of snacks, ice cream and packaged bread are moving to cut prices on some products. It is part of an effort to join the government’s price-stability drive.

As of March 19, three confectionery companies - Lotte Wellfood, Haitai Confectionery and Orion - will cut prices on 10 products by an average 2.9 to 5.6 percent, according to the industry.

Lotte Wellfood decided on March 19 to cut the price of its biscuit product Eomma Son Pie (127 g and 254 g) by 2.9 percent and to lower the prices of three candy products, including Cheongpodo Candy and Peach Candy, by 4 percent each. Orion will also cut prices for BaeBae, Orion Wafers and Bio Candy by an average 5.5 percent. Haitai Confectionery will lower prices for two biscuit products, including Egg Snack Bebefin and Rollipoli, by an average 5.0 percent.

A Lotte Wellfood official said, "It is a difficult situation due to rising various cost factors such as a high exchange rate and high oil prices and increased uncertainty in the international situation due to the war in the Middle East, but we decided on price cuts to help stabilise the economy and reduce consumers' burden."

In ice cream, Lotte Wellfood and Binggrae will cut prices on eight products by an average 5.4 to 6.0 percent.

Lotte Wellfood will lower prices for two pencil-type products - Chaltteok Milk Bingsu Seol 250 ml and Wa Soda Flavor 140 ml - by an average 13.4 percent. Binggrae will cut prices for six ice cream products, including Ringki Bar, Guseul Polapo Kiwi & Pineapple and Wangsill Cookie Sandwich Peanut Butter, by an average 8.2 percent.

A Binggrae official said, "We decided to cut the factory gate prices of ice cream products to join the government’s price-stability drive."

Lotte Wellfood and Samlip decided to lower packaged bread prices. Lotte Wellfood will cut prices for two products, including Kirin King Manju and Kirin Bite-Size Honey Hotteok, by an average 6.0 percent. Samlip decided to lower prices for five products, including Pokemon Ghos Choco Cake and California Walnut Cream Sand, by an average 5.0 percent.

Price cuts are spreading across the food industry as sugar and flour makers have lowered prices for wheat flour and sugar and as the government has stressed a price-stability drive by launching a task force for special management of living costs.

Earlier, on March 12, four companies - Nongshim, Ottogi, Samyang Foods and Paldo - cut prices on some products by an average 4.6 to 14.6 percent, and six companies, including CJ CheilJedang and Daesang, also decided to lower prices on some products by an average 3 to 6 percent.

The Ministry of Agriculture, Food and Rural Affairs held the third meeting of the distribution-structure inspection team under the task force for special management of living costs on March 19, chaired by Vice Minister Kim Jong-gu (김종구), and disclosed the price cuts by confectionery and ice cream companies.

Concerns are also raised that if price cuts continue while a high exchange rate and cost burdens persist, the burden on food companies could grow.

An industry official said, "Confectionery and ice cream products use a wide variety of raw materials, so the impact of price changes for a specific raw material is limited," adding, "We are joining the process of price cuts, but it is true that the burden on companies is not small."