K-Food Takes Second Major Leap Through Overseas Production

Meeting local tastes and reducing costs by producing locally in the United States, Japan, and Europe

With the growing popularity of K-food, Korea’s food companies are accelerating their overseas production bases.
According to the industry, Samyang Foods plans to generate all of its sales in China, which accounts for 28% of its overseas sales, from its Jiaxing plant in China, which will begin operating in January next year. Currently, the Milyang Plant 1 handles export volumes to China, however, once the Jiaxing plant is completed, Milyang Plants 1 and 2 will handle export volumes to North America and Europe, while the Jiaxing plant will cater to local demand in China.

Samyang Foods’ revenue last year was KRW 2.3518 trillion, with overseas sales accounting for 80% (KRW 1.9 trillion) of that total.
Ottogi is also preparing to build its first North American plant in California. Although Ottogi has factories in Vietnam, New Zealand, and China, it has previously sold products in the United States based on product volumes produced in Korea.
CJ CheilJedang is also constructing new plants in Dunavarsány, near Budapest, Hungary and South Dakota, USA. CJ CheilJedang invested KRW 100 billion in the Hungarian plant, its first European plant, and construction began in 2024. It is scheduled to begin operations in the second half of this year to produce Bibigo dumplings. Through this factory, which occupies a site of 115,000 square meters, the company plans to target the European dumpling market, as well as Central and Eastern Europe, and the Balkan Peninsula.
Orion is also actively constructing its third factory in Hanoi, Vietnam, with the goal of completing it in the second half of this year. It is reported that land for the fourth factory, in Ho Chi Minh City, was secured last year, and construction is expected to begin as early as the end of this year, or early next year at the latest. The new factory in Tver, Russia, a key hub for Choco Pie, is scheduled for completion in the second half of next year. Last year, Orion generated KRW 2.1982 trillion in overseas sales out of a total revenue of KRW 3.3324 trillion.
Pulmuone is also seeing its overseas tofu sales increase every year. Last year, Pulmuone’s tofu sales in the United States reached KRW 224.2 billion, showing a 12.2% increase from the previous year. This figure represents revenue generated from products produced and sold entirely within the United States.
The company completed the expansion of production lines at its Ayer tofu factory in the eastern USA in the first quarter of this year, and began full-scale operations.

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