Korea's kimchi maker Daesang to build factory in Europe

South Korea's Daesang Corp. plans to build a kimchi factory in Poland as an outpost for entering the European market, where Korean food is hotter than ever. The plant will be the company's third abroad after those in Lianyungang, China, and Los Angeles, California.

The company on Monday said it plans to build the Poland factory in Krakow in a plot covering 6,613 square meters, with construction to start next year and be completed by the second half of 2024. For this, Daesang concluded a contract with ChPN, a Polish producer of fresh fermented vegetables, to set up the joint venture ChPN Europe.

Founded in 2016, ChPN distributes premium and organic fresh fermented products in Poland and other countries on the Continent. With the Polish company's products sold at major hypermarkets such as Carrefour, the joint venture is expected to utilize sales channels on the European market as soon as output begins.

Daesang said it decided to open a massive kimchi plant in Europe given the emergence of countries there as major export markets.

From 2017 to last year, kimchi shipments to the Continent have grown an average of 20% per year, Daesang said, with the Netherlands and the UK in September this year being among the five major markets for the spicy condiment.

Given the ease of supply and demand for materials and accessibility to other countries, the company will make Poland its base for entering the European market.

Write to Soo-Jung Ha at agatha77@hankyung.com