30 Years of Coexistence with Department Stores... Raised 1,000 Luxury Cattle Annually

[Beautiful Journey] Relay Interview
⑤ Jang Jangjae, CEO of Gangjin Maekwoo Livestock Agricultural Cooperative Corporation

Fermented and Aged Makgeolli-Fed Korean Beef
Excellent in Fat, Grain, and Elasticity
Priced 10-20% Higher Than Regular Korean Beef
Still Ranked No. 1 in Meat Section

Jang Jae, CEO of Gangjin Maekwoo Livestock Farming Cooperative Corporation

[Asia Economy Reporter Cha Min-young] In Gangjin-gun, Jeollanam-do, famous as a "foot-and-mouth disease clean area," there is the Gangjin Maekwoo Livestock Farming Association Corporation, which has been raising "Gangjin Maekwoo," cattle fed with Makgeolli. Since first establishing an exclusive partnership with Hanwha Galleria Department Store in 1991, the relationship has continued for 30 years. The number of cooperative farms, which was only five, has now increased to nine. Recently, they have succeeded in diversifying their products from high-end gift sets focused on grilled meat to home meal replacement (HMR) products under the department store's private brand (PB) "Gourmet 494." Among the cooperative farmers, generational change has also occurred, with elderly farmers retiring and a youngest farmer in his 30s newly joining.

Started with Two Cattle After Military Discharge

On the 12th, we met Jang Eul-jae, CEO of Gangjin Maekwoo Livestock Farming Association Corporation, who leads the Gangjin Maekwoo brand (photo). Having no background in livestock farming, he entered the industry in earnest after buying two cattle following his military discharge. He believed differentiation was essential for product competitiveness. To create premium Korean beef, in 1990, he benchmarked Japanese Kobe Wagyu and even visited Kobe in person to closely observe Wagyu breeding methods.

CEO Jang recalled, "Since I had already started, I thought I had to be completely different from the previous generation to survive. I saw my mother marinate ribs in alcohol to make them tender, so I tested feeding Makgeolli to the cattle, and the response was good."

A year later, presenting premium Korean beef tastier than Wagyu, CEO Jang knocked on the doors of distribution channels including Galleria Department Store. The Gangjin Maekwoo brand gained media attention, and Galleria expressed their intention to sign an exclusive contract. CEO Jang said, "Right after signing the contract, we registered the trademark first to protect the brand."

After 30 years, Gangjin Maekwoo now possesses differentiated know-how. Gangjin Maekwoo cattle fed with fermented aged Makgeolli received "excellent" grades in meat quality analysis, including fat content, meat color, fat color, water retention, elasticity, and grain. Gangjin Maekwoo, which sells only the highest grade meat, is about 10-20% more expensive than regular top-grade Korean beef but accounts for over 80% of the total Korean beef sales at Galleria Department Store. It holds the undisputed number one position in the entire fresh meat category.

CEO Jang said, "At first, I thought feeding as much Makgeolli as possible was good, but the fat content became excessive, and there were cost concerns. Now, starting 5-6 months before slaughter at the optimal 23 months of age for the cattle's marketability, we feed them 3 liters daily of alcohol feed diluted with water."

Coexistence with Galleria, Entry into the HMR Market

With the stable sales channel of the department store, farmers were able to focus solely on raising cattle. Galleria purchases Gangjin Maekwoo cattle whole, by the head. The annual number of cattle raised by Gangjin Maekwoo, including young calves, reaches about 1,000 heads. Compared to only 150 heads in 1991, this is a 567% increase. This year, about 400 heads are scheduled for shipment. To support livestock farmers' coexistence, Galleria chose a "whole purchase method" at the best market price, buying popular cuts, less popular cuts, and by-products without discrimination. They handle distribution not only for consumer-preferred cuts like sirloin, brisket, and soup cuts but also for less popular parts. Galleria also covers slaughtering and processing fees conducted at the Nonghyup Naju Livestock Market.

There were difficulties. After the enforcement of the Kim Young-ran Act, demand for expensive Korean beef gifts sharply declined, and this year, the impact of COVID-19 was even greater. As Korean beef consumption fell, the department store reduced the number of heads purchased but developed Gangjin Maekwoo into home meal replacement (HMR) products, achieving true coexistence.

Over the 30 years of long collaboration, the lives of farmers have also changed significantly. Among the initial participating farms, an elderly farmer retired. Amid the new trend of young people in their 20s and 30s returning to farming, a youngest farmer in his mid-30s newly joined. CEO Jang said, "It is a very positive change that many people are returning to farming. However, if entering livestock farming, it is best to raise animals like cattle, pigs, and chickens, which have been steadily bred on the Korean Peninsula, with a consistent and steadfast heart." Despite challenges such as avian influenza (AI) and foot-and-mouth disease in pigs, farming and livestock require "steadfastness" as a basic premise. Recently, the five-year contract was renewed, continuing collaboration with Galleria until the end of October 2025. CEO Jang Eul-jae emphasized, "We just need to raise the cattle well, and the department store takes full responsibility afterward. We have never worried about sales after delivery. Although livestock farming is difficult, Korean beef definitely has premium competitiveness and is a hopeful field."

This content was produced with the assistance of AI translation services.