[Edaily Reporter Han Jeon-jin ] 680 won for a block of soft tofu, 980 won for 400g of tofu. Prices for private-label (PB) products at major supermarkets are dropping below 1,000 won. Until now, 1,000 won has been widely regarded as a key psychological threshold for ultra-low prices. Now, the competition for ultra-low prices is intensifying as the number of products priced under 1,000 won expands beyond basic groceries—which are staples in every shopping cart—to include ready-to-eat meals, beverages, and snacks.

◇From tofu to snacks… Products priced under 1,000 won have surged

According to industry sources on the 30th, Lotte Mart and Lotte Super relaunched their private-label “Today’s Best” tofu and bean sprouts on the 25th, each priced at 980 won for a 400g package. This marks a price reduction to the 900-won range—just one year and three months after the products were first introduced last April at 1,000 won for 300g. E-MART Co., Ltd.(139480)E-MART Co., Ltd. is also expanding its lineup of products priced under 1,000 won, led by its integrated private label “5K Price.” Both companies are prominently featuring ultra-low-price items as part of their regular offerings.

The ultra-low-price competition is playing out head-to-head in the same product categories. Last August, E-MART Co., Ltd. introduced “5K Price Delicious Tofu (400g)” and “Delicious Bean Sprouts (400g)” for 980 won each. The products Lotte Mart has just released are identical in both price and quantity. Since tofu and bean sprouts are staple ingredients with short purchase cycles that are consumed daily, both companies have effectively targeted the items where price competitiveness is most easily felt by consumers.

Prices continue to fall. Last June, Lotte Mart and Lotte Super launched “Today’s Best Soft Tofu (350g)” for 680 won and “Today’s Best Bean Sprouts (380g)” for 980 won. E-MART Co., Ltd. will launch “Yoguberi Bar (75 mL)” for 580 won and “Chocolate Yogurt Bar (80 mL)” for 880 won under its Nobland International Inc. line next month. It will also introduce a 1.5-liter large-size zero-calorie carbonated beverage for 980 won. The ultra-low-price line, which began with fresh foods, is now expanding into the snack and beverage aisles.

The number of ultra-low-price private-label items is also growing rapidly. Lotte Mart’s private-label items priced at 1,000 won or less reached 92 in the first half of this year, a 24% increase from about 70 last year. E-MART Co., Ltd.’s “5K Price” line has expanded to 360 items since its launch last August, and the company plans to expand it to 500 items by the end of the year.

An E-MART Co., Ltd. official stated, “In addition to ultra-low prices, 5K Price is characterized by small-sized and small-quantity packages targeting one- or two-person households,” adding, “We plan to expand our product range to include small appliances and household goods.”

◇Moving Beyond Temporary Discounts to Permanent Ultra-Low Prices… A New Strategy for Attracting Customers

Results are following suit. Sales of Lotte Mart’s private-label products priced at 1,000 won or less have increased by about 20% year-over-year from the start of this year through the 28th. Since their launch through last month, tofu and bean sprouts have sold 2.4 million units, ranking third and first, respectively, in their respective categories. E-MART Co., Ltd.’s “5K Price” line has sold a cumulative total of 35 million units, and last month’s sales rose 88% compared to the first month of its launch. The 980-won protein shake surpassed 10 million units sold just four months after its launch.

Behind this trend lies the prolonged period of high inflation. Last month, the consumer price index rose 3.2% year-over-year, marking the largest increase in 30 months since December 2023. The cost-of-living index, a key indicator of how consumers perceive inflation, also rose 3.4%, reaching its highest level in two years and two months. Since consumers are increasingly price-sensitive toward items they purchase weekly, supermarkets are adjusting prices on basic ingredients such as tofu and bean sprouts.

The nature of competition is also changing. In the past, temporary promotions—such as price-matching guarantees that refunded the difference if a customer found a lower price elsewhere—were seen as key tools for attracting customers. Now, however, ultra-low-priced private-label (PB) products sold year-round have taken their place. This shift is supported by a structure where supermarkets and grocery stores pool their purchasing power to increase volume, set target selling prices in advance, and then adjust product specifications, manufacturers, and their own margins accordingly.

A retail industry official stated, “Promotional prices are forgotten once the event ends, but price tags under 1,000 won remain a reason for customers to return to the store,” adding, “These are no longer loss-leading items; they have become product categories that generate sales on their own.” The official continued, “To keep driving prices down, volume and turnover must be sufficient to support it, so the key question is how far this strategy can be extended across product lines.”