Following strong criticism from President Yoon Seok-youl regarding collusion and rising consumer prices, major bakery companies in South Korea, including Paris Baguette and Tous les Jours, have announced plans to reduce the prices of their bread and cake products. The decision comes after the government's push for price stabilization, especially as raw material costs such as flour have been decreased. The investments in lowering costs reflect the bakery chains' intention to align with the government's directive and enhance consumer affordability.

CJ CheilJedang, a significant player in the flour supply market, reported an average price reduction of 5% for flour products, building on previous cuts of up to 5.5%. As a result of these changes, Paris Baguette has decided to lower the prices of 11 products, including popular cakes, by significant margins, with some items seeing a decrease of up to 10,000 KRW. This response follows the government's ongoing efforts to ensure that reductions in raw material prices are passed down to consumers rather than absorbed by producers.

The context of these price adjustments reflects a broader issue within the South Korean economy, where previous reductions in sugar prices did not translate into lower prices for baked goods, prompting government officials to intervene. President Yoon emphasized the need for fair pricing practices and indicated that market structures must evolve to reflect cost changes accurately. As the Fair Trade Commission probes potential collusion among flour suppliers, these price cuts may signal a shift towards greater transparency and fairness within the industry, potentially benefiting consumers in the long run.