Samyang Foods Establishes Local Corporations in China and the US to Target Overseas Markets

Completion of US Corporation Establishment in August Followed by Planned China Corporation Establishment in December
Profitability Improvement through Sales Growth and Cost Reduction via Direct Local Entry

[Asia Economy Reporter Lim Hye-seon] Samyang Foods is accelerating its overseas market expansion by establishing local subsidiaries in key export markets such as China and the United States.

Samyang Foods announced on the 5th that following the establishment of 'Samyang America' in Los Angeles, USA, last August, it will establish 'Samyang Foods Shanghai Co., Ltd.' in Shanghai, China, this December.

Samyang Foods has continuously considered establishing local subsidiaries due to the rapid growth of its overseas business division. From 2016, when exports began to increase due to the popularity of Buldak Bokkeum Myun, to 2020, the overseas division's average annual growth rate over the recent four years was 41%. During the same period, the proportion of overseas sales in total sales also significantly increased from 26% to 57%.

In particular, China and the United States, where subsidiaries are being established this year, are key markets accounting for 45% and 15% of overseas sales, respectively. In China, where sales reach the 100 billion KRW level, Buldak Bokkeum Myun consistently ranks among the top in ramen sales during major shopping events such as the 618 Shopping Festival and Singles' Day. Moreover, it has secured a solid customer base by being selected as the 'Korea Brand of the Year' by Chinese consumers for three consecutive years since 2019. The United States is rapidly growing, with sales more than doubling in 2020 compared to the previous year due to increased awareness of Korean ramen and the impact of COVID-19.

The US and China subsidiaries will focus on strengthening local sales networks as sales corporations. Samyang America plans to actively pursue entry into mainstream online and offline distribution channels and has already launched its official North American store on Amazon, the world's largest online shopping mall. Samyang Foods Shanghai Co., Ltd. plans to diversify its portfolio by expanding offline sales channels and introducing customized products that reflect local market characteristics.

Samyang Foods aims to secure competitiveness in overseas markets through direct local entry methods such as establishing subsidiaries, taking another leap as a global food company. Samyang Foods, which was the first in Korea to export ramen, has actively expanded overseas by establishing local subsidiaries in Vietnam in 1969, followed by the United States, China, Russia, and Latin America in the 1980s. Especially, with the completion of the new Milyang factory next year, which will serve as an export base, it is expected to flexibly respond to overseas demand, creating significant synergy effects with local subsidiaries.

A Samyang Foods official stated, “We expect not only sales growth through strengthening the sales network by establishing local subsidiaries but also improved profitability through unified distribution processes and efficient cost management.” He added, “We plan to increase the proportion of local subsidiaries in Japan, the United States, and China to 70% of overseas sales by 2025.”

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