(C) Youtube
SEOUL — In a rare victory for South Korean consumers grappling with "bread-flation," the nation’s two dominant bakery franchises, Paris Baguette and Tous Les Jours, announced on Thursday that they will lower the prices of their most popular products.
The coordinated price cuts, effective next month, mark a significant shift in the retail landscape. They come on the heels of intense government scrutiny into the food supply chain and a direct appeal from President Lee Jae-myung for corporations to share the benefits of falling ingredient costs with the public.
The Domino Effect: From Mill to Shelf
The price adjustments are a direct response to recent moves by South Korea’s major flour and sugar producers. Following a high-profile investigation into alleged price-fixing (collusion) among industrial suppliers, giants such as CJ CheilJedang, Samyang Corp, and Daehan Flour Mills recently lowered the wholesale prices of sugar and flour by approximately 5%.
President Lee Jae-myung, during a cabinet briefing on February 24, emphasized that the cooling of global commodity prices must be reflected in the "dining table prices" paid by ordinary citizens. "The benefits of reduced production costs must not stop at the corporate balance sheet; they must reach the pockets of the consumers," the President stated.
Paris Baguette: A Strategic Pivot to "Value"
SPC Group’s Paris Baguette, the largest bakery chain in the country, announced it would lower the prices of 11 items starting March 13. The reductions focus on "staple" snacks and high-demand celebratory items.
Daily Staples: Classic favorites like Red Bean Bread, Soboro Bread, and Choux Cream Bread will see their prices dropped from 1,600 KRW to 1,500 KRW.
Health & Convenience: Whole Grain Oat Bread will decrease from 4,200 KRW to 3,990 KRW, while the 3-piece Castella will drop by over 14% to 2,990 KRW.
Premium Cakes: In a move to ease the burden of family celebrations, five popular character cakes will see massive discounts. For instance, the Huntrix Golden Cake will be slashed from 39,000 KRW to 29,000 KRW—a 10,000 KRW reduction.
Furthermore, Paris Baguette is set to launch a 1,000 KRW "Value Croissant" next month, a move analysts see as a strategy to recapture budget-conscious consumers who have migrated to convenience store bakeries. "Despite rising labor and logistics costs, we have decided to join the national effort to stabilize prices and alleviate the burden on our customers," an SPC official said.
Tous Les Jours: Responding with Scale
Just two hours after Paris Baguette’s announcement, its primary rival, CJ Foodville’s Tous Les Jours, followed suit with an even broader price cut. Starting March 12, the franchise will reduce the supply prices of 17 items by an average of 8.2%.
The list includes its signature "Chestnut Bread" and "Fresh Cream Toast Bread," with individual price drops ranging from 100 KRW to 1,100 KRW. Their popular Lotso Berry Good Day cake will also see a 10,000 KRW price cut, mirroring the competitive strategy of Paris Baguette.
"Our decision aligns with the government’s stance on stabilizing the cost of living for the people," a CJ Foodville representative noted.
The Economic Landscape: Why Now?
South Korea has historically faced higher bread prices compared to other OECD nations due to a complex distribution web and a high reliance on imported wheat. In 2025 and early 2026, food inflation remained a "sticky" economic challenge, threatening consumer sentiment despite a cooling in the tech-driven export sector.
Industry experts suggest that while these cuts are a welcome relief, they are also a defensive maneuver. With the Fair Trade Commission keeping a watchful eye on "shrinkflation" (reducing product size while maintaining price) and price-gouging, retail leaders are choosing proactive price reductions to avoid more stringent regulatory measures.
What’s Next for the Food Industry?
The "Bakery Duo’s" decision is expected to trigger a ripple effect across the broader food and beverage sector. SPC Samlip, the wholesale arm that supplies convenience stores and supermarkets, has confirmed it is also reviewing price reductions for its packaged bread products.
As the "big players" move, smaller regional bakeries and coffee chains may find themselves under pressure to follow suit to remain competitive.
For the South Korean consumer, the upcoming month of March represents a rare moment where the "cost of a snack" is actually going down. Whether this trend persists will depend on the continued stability of global grain markets and the government’s ongoing vigilance over domestic distribution networks.
[Copyright (c) Global Economic Times. All Rights Reserved.]
