Samyang’s power: Hot Chicken Flavor Ramen by daughter-in-law

Samyang Foods Co., a South Korean instant noodle maker, enjoyed record earnings last year thanks to increasing overseas sales of its global-hit Hot Chicken Flavor Ramen developed by one of the group founder's daughter-in-laws.

Samyang said on Wednesday its operating profit jumped 62.5% to an all-time high of 146.8 billion won ($110.1 million) in 2023 as sales advanced 31.2% to 1.2 trillion won. It was the first time the company has reported revenue of more than 1 trillion won since its foundation in 1961.

“We achieved growth with high quality as we focused on the global market centered by overseas units,” said a Samyang official.

“We aim to create new growth opportunities through fostering strategic brands such as buldak and new businesses while maintaining growth in overseas businesses,” the official said, referring to Hot Chicken Flavor Ramen, also called buldak-bokkeum-myeon.

The company is predicted to improve earnings further this year with an operating profit of 174.4 billion won based on sales of 1.4 trillion won, according to a local financial market tracker FnGuide Inc.

DAUGHTER-IN-LAW’S RECIPE

Samyang accelerated its growth in the global market in 2023 with Hot Chicken Flavor Ramen. The company’s overseas sales, which account for about 70% of its total revenue, topped 200 billion won for the first time in the third quarter of last year with significant increases not only in its key Chinese market but also in the US and Southeast Asia. The famous instant noodle is sold at major US retail outlets such as Walmart Inc. and Costco Wholesale Corp.

The hit product exported to about 100 countries worldwide was developed by Kim Jungsoo, vice chairman and CEO of Samyang Roundsquare Co., a holding company of Samyang Foods Group that introduced South Korea’s first ramen product in 1963.

Kim, a daughter-in-law of group founder and late Honorary Chairman Chun Joong-yoon, launched Hot Chicken Flavor Ramen in 2012, revitalizing Samyang Foods, which had been struggling to compete with its rivals amid a lack of a hit product.

To meet surging demand for the ramen, Samyang built a new factory in 2022 with 240 billion won in South Korea. The company also invested 164.3 billion won in another plant, which will be completed in May 2025, to boost production capacity by 25% and expand overseas markets.

It introduced Meptaeng, a spicy instant noodle soup, in August last year to attract customers who love the taste of Hot Chicken Flavor Ramen.

Write to Hyung-Joo Oh at ohj@hankyung.com
 

Jongwoo Cheon edited this article.