Korea Ginseng Corporation opens new R&D center in California

Korea Ginseng Corporation (KGC), a leading producer of Korean ginseng products, said on Wednesday that it has opened a new research and development center in Fullerton, California, near Los Angeles.

The center is KGC’s second overseas R&D facility, following one in Shanghai, China. It consists of a product team, a development team and a support team that will oversee new brand development as well as process and quality management of locally produced items, the company said.

KGC entered the US market in 2003 by establishing an overseas branch office in California. The company said its US office has achieved a compound annual growth rate of 15% for the past five years since 2018.

The US office has also increased its online market penetration through platforms such as Amazon.com Inc., eBay Inc. and iHerb LLC, while at the same time expanding its distribution network through large retailers such as Costco Wholesale Corp., KGC said.

Heo Cheol-ho, chief executive officer of KGC, said at the opening ceremony on March 11 that the new R&D center will strengthen local customized product development and contribute to building a local production infrastructure.

Heo also visited booths of Cheong Kwan Jang, KGC’s flagship brand of red ginseng products, and other global health functional food brands at the Anaheim International Natural Food Expo.

Write to Kyeong-je Han at hankyung@hankyung.com