[Asia Exclusive] Kim Hong-guk, Chairman of Harim, Ramen Becomes Cuisine... The Era of Instant Gourmet

The Instant Food Icon Ramen Challenges the Ready Meal Market Revolution
Plans to Launch Over 100 Varieties Including Dumplings and Broth

Focusing on Urban Advanced Logistics Complex Development
A Digital, Manufacturing, and Logistics Convergence Hub
Will Keep Advancing for Global Competitiveness

Chairman Kim Hong-guk of Harim Group is being interviewed by Asia Economy on the 7th. / Photo by Moon Ho-nam munonam@

"Convenience foods and ramen should not be merely meals to get by. We will create healthy and delicious meals with premium home meal replacements (HMR) that are on par with dishes made by Michelin-starred chefs."

Kim Hong-guk, Chairman of Harim (64), is challenging the revolution of the HMR market. His ambition is to elevate HMR, which has been perceived as instant food, to the level of cuisine and replace the home kitchen. Twenty years ago, kitchens occupied one-third of living spaces, but now they have shrunk to just 7% of the total. This is because fewer households cook meals themselves.

In an interview with Asia Economy at his office on the 16th floor of the Harim building in Nonhyeon-dong, Gangnam-gu, Seoul, Chairman Kim explained, "The kitchen has run away and gathered in food factories," adding, "If it is more economical, tastier, healthier, more hygienic, and more convenient than cooking at home, there is no need to cook at home."

The brand that Chairman Kim ambitiously launched is ‘The Miseok’. He chose ramen, a representative commoner’s food, as the first product. His love for ramen is unwavering, having said it took six years to develop. He defines the ambitious ‘Artisan Ramen’ as ‘cuisine.’ The broth is characterized by being made by separately simmering beef blood, ox bone, pork bone, chicken, and beef at low temperatures for a long time. Although the price is somewhat high (2,200 KRW), there were concerns about price resistance, but the initial response has been more successful than expected. Five million packs were sold within a month and a half after launch. Next month, they will release Jjajang (black bean sauce) ramen.

Chairman Kim said, "A Jjajang ramen that could not be tasted in existing ramen has been born," and added, "We also plan to launch ramen with Korean soup and stew culture flavors such as shepherd’s purse and mallow soup next year."

Having started his business at the young age of 18 and built Harim Group, ranked 27th in the business world, Chairman Kim’s goal is to leap into a global comprehensive food company. To this end, he is actively engaging not only in the HMR market but also in the development of urban advanced logistics complexes.

- What is the background for focusing on ramen?

△ I started with the idea of introducing ramen as cuisine rather than competing on price with existing ramen to grow the entire market. Harim aims to elevate ramen, which has been synonymous with instant food, to the level of gourmet cuisine made properly by artisan chefs. We differentiated by not using artificial seasonings and by kneading the noodles with broth made from meat and vegetables.

The belief to make it properly and charge the right price has not changed and will not change in the future. Over 35 years in the food business, I realized that if the food is delicious and healthy, it will be loved by consumers for a long time without much promotion. Ultimately, the choice is up to the consumers. Starting with ramen as the first menu of The Miseok, we will introduce dumplings, broths, soups, stews, and more. We also plan to strengthen the lineup of ramen with various types such as fried noodles and different Yukgaejang-style noodles as culinary ramen.

- What are your principles regarding the food business?

△ Market demands for food are constantly changing. Especially the MZ generation (Millennials + Generation Z) are more accustomed to purchasing food rather than cooking it themselves and treat food as trendy as fashion. Their standards for quality are also demanding. Customers want to know what ingredients are used, what cooking processes are involved, and how the food is distributed before it reaches their table. To meet these demands, it is necessary to integrally manage the entire value chain from production and procurement of ingredients to manufacturing, processing, distribution, and delivery of food. Harim has long been building a system while considering how well it can connect and integrate this value chain.

Harim’s food philosophy is that delicious food starts with fresh ingredients. The slogan ‘Making life delicious with natural materials and freshness’ and the brand ‘The Miseok,’ meaning ‘becoming gourmet life,’ both stem from this philosophy and principle. If we keep our food philosophy of nature, freshness, and the best taste, and adhere to the principle of ‘not accepting anything that is not fresh and not releasing anything that is not the best taste,’ we can earn customers’ trust.

- What are your plans for co-prosperity with small businesses?

△ We plan to release over 100 types of HMR under ‘The Miseok’ brand. In the long term, Harim will take responsibility for research and development (R&D) and distribution, while entrusting production to small and medium-sized enterprises. If given precise technology and roles, co-prosperity is fully possible. Simplifying the product items per company increases productivity and quality. There are many small but strong food companies nationwide with good technology but weak sales channels. Harim plans to discover these companies, share know-how, and find ways to prosper together through HMR.

- You are increasing investment in urban advanced logistics complexes.

△ Urban advanced logistics complexes are projects to create future ecosystems. It is not just simple automation but responding to the demand for lifestyle logistics services in the digital economy era and creating essential urban infrastructure that combines distribution, logistics, and digital technology. The old Korea Cargo Terminal site in Seocho-gu, Seoul, was selected as a pilot urban advanced logistics complex by the Ministry of Land, Infrastructure and Transport in 2016. This is the first attempt in Korea to create a logistics-distribution complex, and since it is a project in a major city like Seoul, much preparation is required. Facilities such as logistics terminals and warehouses, which are typical logistics complex facilities, and large-scale stores, which are upstream facilities, have been newly defined as urban advanced logistics complex facilities. Various support facilities such as cultural and lodging facilities and public facilities can also be included.

- What are the strengths of the Yangjae urban advanced logistics complex?

△ The complex development of urban advanced logistics complexes aims to create new growth engines by enabling manufacturing, logistics, and distribution to take place in the same space in a digital-based economy where the boundaries between business and industry are breaking down. For the facilities and functions of the urban advanced logistics complex to interact and converge, technologies of the 4th industrial revolution such as artificial intelligence (AI), big data, Internet of Things (IoT), and robotics must be integrated.

Harim has six vision plans for the urban advanced logistics complex. First, to generate no delivery waste and recycle 100% of food waste generated within the complex. To provide safe working conditions for delivery workers and lead carbon neutrality. Also, to create a growth base for the logistics-distribution convergence industry and support co-prosperity between urban and rural areas and small and medium enterprises, making it a smart & green logistics complex. We plan to proceed well with multiple goals such as the purpose of introducing urban advanced logistics complexes, enhancing Seoul’s global city competitiveness, and creating new growth engines for industrial development.

- You have approved a governance restructuring plan to convert NS Shopping into a wholly owned business subsidiary.

△ We are promoting a comprehensive stock swap to incorporate NS Shopping, a food-specialized channel subsidiary of Harim Holdings, as a wholly owned subsidiary. This business restructuring through the stock swap is securing a strong new growth engine by swiftly advancing NS Shopping’s food-specialized platform construction and the flagship Yangjae urban advanced logistics complex development project. Just as platform companies were born by integrating digital and data technologies, the urban advanced logistics complex will be a space where R&D facilities, urban advanced logistics facilities, large-scale commercial facilities, urban factories, office facilities, conventions, performance culture, leisure & sports facilities, lodging, and residential facilities interact in the same space.

- What are your future business plans?

△ Since my school days until now, I have not set grand goals. I start something, refine it, and once I improve its completeness, a new goal emerges, and I move toward that goal. When you climb a small peak, you see a bigger peak that was not visible from below, and when you climb that peak, you see an even higher peak, and you set a goal to climb that peak. Harim has been tirelessly striving to enhance the global competitiveness of the agro-food industry. Especially in food, competitiveness is determined by how tightly the value chain is connected and managed. Going forward, Harim will continuously challenge itself to increase global competitiveness through scaling, modernization, globalization of the agro-food industry, productivity innovation, and reform of distribution logistics.

△ Born in 1957 in Iksan, Jeonbuk △ Bachelor of Business Administration, Howon University △ Ph.D. in Business Administration, Graduate School of Jeonbuk National University △ CEO of Harim Foods since 1986 △ Chairman of Korea Broiler Association since 1993 △ Chairman of Harim Group since 2001 △ Policy Committee Member of the South-North Agricultural Cooperation Promotion Council since 2005 △ Chairman of Harim Foundation since 2006 △ Vice Chairman of the Korea Federation of Medium-sized Enterprises since 2013 △ Chairman of the Jeonbuk Residents Association in Seoul since 2019

Interview by Myung Jin-gyu, Head of Consumer Economy Department

Summary by Reporter Lim Hye-seon lhsro@

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