Latest news with #K-food
Korea Herald
7 days ago
- Business
- Korea Herald
Korean rice heads to Japan in record 200-ton deal
Korean food export company The O Global has signed a landmark agreement with Beisia, one of Japan's top retail distributors, to export 200 tons of Korean rice to help ease Japan's ongoing rice shortage. The contract represents the largest volume of rice ever exported by a private Korean company for general consumer sales in Japan. Shipments of premium Saecheongmu rice, cultivated in Gangjin, South Jeolla Province, began on Monday and will continue over the next four weeks. The rice will hit shelves in major Japanese retailers starting in late June, packaged in 5-kilogram bags for direct consumer purchase. The deal comes at a time when Japan is grappling with surging rice prices, driven by a combination of falling domestic demand, government-led reductions in rice cultivation and a historic heat wave in 2023 that severely impacted yields. These factors have fueled a spike in imports of foreign rice, including from Korea. Yuni Chung, founder and CEO of The O Global, expressed strong confidence in the product's appeal to Japanese consumers during a recent interview with The Korea Herald on May 23. 'Saecheongmu is one of Korea's highest-quality rice varieties, grown under optimal conditions,' Chung said. 'It's a compelling choice even for Japanese consumers, who are famously discerning about rice quality.' Market research highlights Saecheongmu's soft, fluffy texture and mildly sweet flavor, characteristics that align well with Japanese consumer preferences. 'Japan is dealing with a range of structural issues, including a shrinking population, an aging agricultural workforce and climate-related production challenges,' Chung added. 'We're proud that our rice can help alleviate some of these pressures.' Looking ahead, The O Global plans to expand its export portfolio to Japan to include abalone, seaweed, rice cakes, snacks and other Korean agricultural and marine products. Founded in the early 2000s, The O Global has steadily built its reputation as a K-food and lifestyle product exporter, beginning with Korean desserts and sauces and later expanding into seafood, fruits and grains. 'The biggest shift since I started this business is how Korean food products, especially those carrying the 'K-' label or packages written in Hangeul, are now trusted and sought after overseas,' Chung said. Currently, more than 50 percent of The O Global's business is focused on the Japanese market. To further strengthen its footprint, the company plans to open a branch office in Japan next month, with additional overseas branches planned for Thailand, China and France starting next year.
Korea Herald
19-05-2025
- Business
- Korea Herald
From satellites to smart farms: Korea's agriculture minister reimagines rural sustainability
Despite rising global tariffs, K-food exports hit record highs as ministry strengthens proactive support for agri-exporters South Korea's Ministry of Agriculture, Food and Rural Affairs is taking meaningful steps to modernize the country's agricultural sector and ensure its long-term sustainability. Led by its first female minister, Song Mi-ryung, the ministry has been focusing on three key transitions: digital innovation, generational change and the transformation of rural spaces. 'Food and livelihood are essential pillars of any society," Song said during an interview with The Korea Herald at the Agriculture Ministry's Seoul office on Thursday. "Because agriculture underpins both, I believe it is a sector we must prioritize and never neglect. I see agriculture becoming a competitive industry in the future — not just essential, but innovative. And I believe the countryside will be increasingly seen as a desirable and inspiring place.' A year and five months into her term, the minister has made 297 field visits over 503 days, demonstrating a strong commitment to understanding and addressing the practical needs of farmers and rural communities. A top priority for the ministry today is the digital transformation of agriculture, which goes hand in hand with generational change, according to Song. New legislation took effect between July 2024 and January 2025, including the Smart Agriculture Act, Food Tech Act and Green Bio Act. These laws aim to support private sector participation and attract younger generations to farming. The ministry is also establishing green bio hubs and food tech research centers while easing regulations to allow for innovations such as vertical farms. 'Currently, only about 1 percent of the country's farm managers are young people. (This is) a deeply concerning figure. To attract young talent, farming must evolve beyond the image of toiling under the sun, hoping for good weather,' Song said. The ministry aims to cultivate 30,000 young agricultural leaders by expanding support for new farmers and increasing financial incentives. The monthly startup grant for young farmers currently stands at approximately 1.1 million won ($787), with the number of recipients rising from 4,000 in 2023 to 5,000 as of last year. In addition to financial aid, the ministry is offering smart farm rentals and entrepreneurship programs to help young people establish successful careers in agriculture. 'At first glance, it may seem that young people simply lack interest in rural life. But in reality, many are drawn to the idea of a slower, more fulfilling lifestyle, much like the one portrayed in the film 'Little Forest.' We've seen many cases where young people in Seoul take the brave step of relocating to the countryside to launch unique, independent businesses. Most importantly, they report a high level of satisfaction with the lifestyle.' Song cited France's 'third spaces' project and Japan's rural revitalization model as compelling examples. In Japan, she observed that young people form nonprofit groups move into rural areas, engage in farming and food processing, and sell their products at urban 'antenna shops.' These global models, Song emphasized, offer valuable benchmarks Korea can adapt to suit its unique context. 'In the future, people may work in the city for four days and spend the remaining three experiencing a different pace of life in the countryside. Rural areas will increasingly serve as spaces for lifestyle-oriented businesses. In this sense, the countryside becomes a 'third space,' not just urban or rural in the traditional sense, but a new kind of environment that holds growing value for modern life.' By 2029, the government aims to convert 35 percent of the nation's 55,000 hectares of greenhouses into smart farms and introduce digital technologies to 20 percent of major field crop areas. The ministry is also actively investing in research and development, including Korea's first dedicated agricultural satellite, which is currently in the final stages of assembly and scheduled for launch via SpaceX next year. The satellite will collect crop growth data across the Korean Peninsula every three days. This high-resolution, real-time data will be integrated with climate information to produce accurate production forecasts. 'The technology will transform agricultural policy and operations by enabling scientific, data-driven decisions,' Song said. 'I firmly believe this gathered data will not only enhance government policymaking but also create new business opportunities for private companies by enabling more accurate forecasts and strategic decisions in the global market.' Song noted that while countries like the United States have already adopted similar technologies, Korea is positioning itself as a first mover. The satellite project represents a significant step forward in the digital transformation of Korean agriculture. Meanwhile, Korea's agricultural exports have reached record highs, with K-food plus exports totaling $13 billion in 2023 and showing a 9.4 percent year-on-year increase as of April 2025. According to the ministry, K-food plus exports refers to agri-food products as well as products from industries with forward and backward links to agri-food. The ministry has worked to expand fresh produce exports, negotiate new quarantine agreements and promote Korean food products globally. Fresh produce exports reached $1.57 billion in 2024, accounting for 19 percent of total K-food exports. Internationally, the ministry is strengthening partnerships through initiatives such as the "K-Ricebelt," which shares high-yield rice cultivation technology with 14 African countries. Last year, Korea produced 3,562 tons of rice seeds for the project, exceeding its target. The ministry is also promoting traditional Korean flavors, with exports of Korean sauces such as gochujang reaching a record $394 million in 2024. Korea's jang-making culture has also been recognized by UNESCO. Regarding the evolving policy landscape in the US under the second administration of US President Donald Trump, Song said the impact of baseline tariffs appears limited so far, based on current export data. 'In April alone, K-food exports recorded their highest monthly performance of the year, rising 12 percent year-on-year to $940 million. Exports to the US grew even more sharply, up 37 percent from the same period last year, reaching $170 million.' She added that food is more than just a commodity — it is consumed as a form of culture. 'Thanks to strong brand loyalty among younger consumers globally, we do not anticipate major obstacles to expanding K-food exports.' On the topic of global tariffs, the minister emphasized the need for proactive, real-time support. 'Providing timely and accurate information to agri-food exporters is essential, along with resolving on-the-ground challenges. To better address industry concerns, we've enhanced the US export support function of aT's (Korea Agro-Fisheries & Food Trade Corporation) Export Information Desk and launched reciprocal tariff response seminars.' Sustainability and animal welfare are also key pillars of the ministry's long-term agenda. Initiatives include expanding the use of livestock waste for renewable energy and strengthening systems to prevent livestock diseases. In a landmark policy shift, Korea enacted a ban on dog meat in February 2024. By early 2025, 40 percent of dog farms had shut down, and the ministry aims to close more than 60 percent — around 938 farms — by year's end. 'The movement to end dog meat consumption gained momentum around the 1988 Seoul Olympics. As the country developed, social consensus grew to ban the practice, reflecting increased awareness of animal welfare. We believe this will also encourage progress in animal rights in countries where dog meat consumption continues,' Song said. She added that the government is aiming for a complete ban by 2027, positioning Korea as a global leader in animal welfare.
Korea Herald
14-05-2025
- Business
- Korea Herald
Paik Jong-won strikes back, vows to take legal action against 'malicious attacks'
K-food mogul blames strings of petitions by certain individuals, seeks charges against YouTubers Korean celebrity chef and food franchise entrepreneur Paik Jong-won has announced plans to take legal action against what he describes as 'malicious attacks' aimed at destabilizing his company, TheBorn Korea. Speaking with reporters at a restaurant in Gangnam-gu, Seoul, on Tuesday, Paik said his company has reviewed online content, particularly on YouTube, and is preparing to respond legally to those who 'distort the facts with malicious intent.' "I could tolerate attacks against Paik Jong-won the individual, and I do feel remorse about errors of my ways and am fixing them ... but it's the excessively critical (online) content that worries me," he said. The comments come on the coattails of Paik's announcement last week that he would discontinue TV appearances in light of the string of controversies concerning his food and beverage company. This includes accusations of misleading or deceiving consumers about the origins of ingredients and failing to properly refrigerate meat at a local festival. Police said Monday that 14 cases related to Paik and the company are currently under investigation. 'A few individuals are behind this' The 58-year-old entrepreneur offered an apology for the hygiene issues and misleading product labeling. He announced that TheBorn Korea would spend 30 billion won ($21.1 million) in support measures for franchisees suffering financial troubles and reputational damages. In a bid to power through the controversy, Paik said he is currently working on developing new sauces for Korean dishes for the international market. Concerning the much-disputed product Paik Ham — which had low pork content despite being more expensive than the market price of other ham products of similar quantity — he said the company would release a new version with higher pork content in the coming months. While Paik admitted responsibility for the company's missteps, he also claimed that a small group of individuals is driving the majority of the attacks. He said some individuals have submitted over 70 petitions to the authorities concerning TheBorn Korea, and said that the repeated criticism over issues already under improvement was exacerbating the anxiety of franchise store owners. "We admit to the problems and are trying to fix them, so I urge you to wait and watch just a little bit." An unidentified petitioner, who recently posted online proof of themselves submitting 72 petitions related to Paik and the company between March and May, refuted Paik's comments on Wednesday. The person said that those are not repeated petitions about the same issue, but petitions over repeated illegal acts. "If the same company repeatedly conducted illegal activities across the country, wouldn't it be in the public's interest to consistently raise the issue about it?" The person posted in an online community.
Korea Herald
18-04-2025
- Business
- Korea Herald
Policy Watch: Lee Jae-myung to double Korean culture industry revenue, exports in 7 years
Liberal Democratic Party of Korea presidential candidate front-runner Rep. Lee Jae-myung said he would work to support Korea's content industries related to arts and culture, which he said could annually generate a total of 300 trillion won ($211 billion) in sales and 50 trillion won in exports by 2030. According to the latest government estimate unveiled in March, South Korea's content industries in 2023 generated a total revenue of 154.2 trillion won, while total exports stood at $13.3 billion. If elected president, Lee will "significantly increase financial support for the entries of K-food, K-beauty, K-pop, K-drama and K-webtoon into markets overseas," he wrote in a Facebook post on Friday. Lee added he would work to allocate more state budget to the country's content-related sector, which currently accounts for only 1.33 percent of national expenditures this year. The state support will also go to content creation and production, overseas market outreach translation and content distribution for small to medium-sized businesses. Lee pledged policy loans and tax breaks for R&D related to Korean culture and the arts.
Korea Herald
07-04-2025
- Business
- Korea Herald
US tariffs pour cold water on exports of Korean ramyeon
Trump's surprise move to impose a 25 percent tariff on imports to the US from South Korea starting Wednesday is set to disrupt key exports, with food products at their peak. Among the hardest hit appears to be Korean instant noodles, or ramyeon, which have become a runaway hit with American consumers. Ramyeon has led the way as Korean food exports have steadily climbed over the past decade. According to data from the Korea Trade Statistics Promotion Institute, Korean food exports surged from $3.51 billion in 2015 to $7.02 billion in 2024. Ramyeon led the charge with $1.36 billion in sales, accounting for 19.4 percent of total K-food exports, while the US emerged as the top importer, as the destination for 20.8 percent of the total exports. In the first quarter this year, ramyeon posted the highest on-year growth of 27.3 percent among food items with over $100 million in export volume, while overall Korean food exports hit a record $2.48 billion, according to the Ministry of Agriculture, Food and Rural Affairs. That momentum, however, now hangs in the balance. Despite previous protections under the US–Korea Free Trade Agreement, the new tariffs could squeeze profit margins and drive up ramyeon prices. The impact may be harsher for Korean food companies without US-based production. Facing a bleak horizon is Samyang Foods, the maker of the popular Buldak ramyeon, which lacks a US factory to fall back on. The company ships its noodles directly from Korea, while its first overseas plant — slated for completion by 2027 — is in China, a country facing even steeper tariffs than Korea. The company posted record overseas sales last year of 1.33 trillion won ($908 million), up 65 percent from a year earlier. Its American subsidiary saw an even sharper rise, with revenue jumping 127 percent on-year to around $280 million. Samyang Foods has formed a task force to address the impact of the new US tariff policy, according to CEO Kim Dong-chan. 'We're taking a multifaceted approach in a broad sense such as diversifying into other regional markets or improving cost structures,' Kim said at the Korea International Ramyeon Fair last week, adding that the company is also evaluating potential sites for overseas factories. Other food manufacturers, such as Nongshim and CJ CheilJedang, may be better positioned to weather the storm, thanks to their established production facilities in the US. Nongshim, the maker of another Korean staple, Shin Ramyun, has operated a US subsidiary since 1994 and currently runs two American plants to handle the bulk of its local demand. CJ CheilJedang, the company behind the Bibigo brand, which includes its own line of noodle products, operates 20 manufacturing facilities across the US. The food giant reported 5.58 trillion won in overseas sales last year, with 4.7 trillion won coming from the North American market alone. Ottogi, known for its Jin Ramen products, may be poised to accelerate plans for a US manufacturing plant, as it has already secured a site, although no construction timeline has been announced. With the food industry reeling from the tariff news, uncertainty and concern are expected to persist for the foreseeable future, according to industry insiders. 'Even companies with strong branding and demand will struggle to withstand a 25 percent tariff,' one company official noted, predicting potential price hikes for Korean instant noodles in the global market. 'Even if a company started planning a US factory today, the facility wouldn't be operational until after Trump's term, which leaves such investments vulnerable to future political climates,' the official added.
