Ramen Business Started with 5 Million Won... Shin Chun-ho Built the World's 5th Largest Company

Emphasizing Technical Skills, Introducing 'Taste of Korea' to the World
Calling Themselves 'Ramyeonjaengi' and 'Snackjaengi'

Shin Chun-ho, Chairman of Nongshim Group

[Asia Economy Reporter Lim Hye-seon] Shin Chun-ho, chairman of Nongshim who passed away on the 27th, was a self-made entrepreneur who built the world's 5th largest ramen company with innate diligence and outstanding investment sense and insight. Chairman Shin used to call himself a 'ramen guy' and a 'snack guy.'

Ramen Business Started with Capital of 5 Million Won

Yulchon (栗村) Shin Chun-ho was born in December 1930 in Samdong-myeon, Ulju-gun, Ulsan Metropolitan City. He was the third son among five sons and five daughters of his father Shin Jin-su and mother Kim Pil-soon. He was a brother of the late Shin Kyuk-ho, honorary chairman of Lotte Group. In 1954, he married Kim Nak-yang and had three sons and two daughters: Shin Hyun-joo (vice chairman of Nongshim Planning), Shin Dong-won (vice chairman of Nongshim), Shin Dong-yoon (vice chairman of Yulchon Chemical), Shin Dong-ik (vice chairman of Mega Mart), and Shin Yoon-kyung (wife of Amorepacific chairman Seo Kyung-bae).

After graduating from university in 1958, he helped his successful older brother, the late Shin Kyuk-ho, in Japan to start a confectionery business, but from 1963 he sought independent business ventures. Chairman Shin focused on the fact that ramen, which could be cooked easily and quickly, was gaining great popularity in Japan, where industrialization and urbanization were progressing. At that time, he thought, "Ramen in Korea should be a staple food different from the convenience food ramen in Japan," and "It should be an affordable substitute food that suits our taste and is sufficiently nutritious to play a big role in solving eating problems." At the age of 35 in 1965, he started the ramen business with a capital of 5 million won by bringing in a ramen-making machine to Shindaebang-dong, Dongjak-gu, Seoul.

Early Nongshim Daebang Factory

Emphasizing the 'Ramen Artisan's' Technical Skills, Leaving Korean Intellectual Property

Chairman Shin always emphasized technical skills. His philosophy was that one must stand on their own to go far. In fact, introducing Japanese technology, where the ramen industry began to take off, made product development easier. However, Chairman Shin judged that it was impossible to embody Nongshim's unique characteristics or create products suited to Korean tastes. From the company's establishment, he set up a separate research and development department. His stubbornness was clearly shown when establishing the Anseong factory. To achieve an innovative change in soup flavor, he reviewed advanced manufacturing facilities from developed countries but opposed turnkey implementation to realize a Korean taste. Although the facilities were advanced, they were developed for Westerners, so he ordered the optimal combination that could best implement the know-how Nongshim had accumulated. He told employees, "Starting from scratch will be tough for our engineers, but the technology developed by our own hands will remain as our intellectual property."

However, the crisis began early in the business. In the early 1970s, Nongshim did not attract attention in the domestic ramen market centered on chicken broth. Chairman Shin turned the tide by betting on 'beef ramen' using beef broth instead of chicken. Afterwards, he increased market share by launching products such as 'Neoguri' and 'Yukgaejang Bowl Noodles' in 1982, 'Anseongtangmyun' in 1983, and 'Jjapaghetti' in 1984.

Entrepreneur Who Bet on 'Spicy Flavor'

In the mid-1980s, Chairman Shin embarked on developing 'Shin Ramyun,' emphasizing spicy flavor. Despite concerns about the spiciness, he pushed forward, saying, "The unique spiciness of Shin Ramyun will bring differentiation to the monotonous ramen market." He personally oversaw everything from product development to naming and packaging design. Shin Ramyun achieved sales of 3 billion won within three months of launch and became the 'national ramen' dominating the domestic market from 1991. Chairman Shin's challenge extended to snacks. He entered the snack market and created Korea's first snack, 'Saewookkang.' Following the success of Saewookkang, he launched hit products such as 'Yangpokkang' and 'Gamjakkang,' securing the top position in the snack sector. As of last year, Nongshim recorded sales of 2.639 trillion won and operating profit of 160.3 billion won.

Brand Expert Who Personally Named Products

Chairman Shin was also renowned as a brand expert. He personally named Nongshim's all-time hit products such as Anseongtangmyun, which combines the name of the region famous for organic bowls with 'tang' (soup) served at ancestral rites; Jjapaghetti, a combination of jajangmyeon and spaghetti; and Saewookkang, inspired by his young daughter's pronunciation. His representative work is undoubtedly Shin Ramyun. Although familiar now, the name was groundbreaking at the time of launch. Most brands then centered on company names, and there was no precedent for using Chinese characters as product names. However, Chairman Shin persuaded executives that naming should be easy to pronounce, catch consumers' attention, and clearly convey product attributes.

Food Patriotism, Spreading 'Korean Taste' Worldwide

Chairman Shin advocated 'food patriotism' and promoted Korean taste globally. From the early stages of overseas expansion, he dreamed of globalizing Shin Ramyun. His idea was to "take the Shin Ramyun sold in the Korean market overseas as is." He believed Korean taste could fully satisfy the palates of people worldwide. He was confident in the quality. Nongshim took its first step in overseas business by exporting beef ramen to the U.S. in 1971. Despite suggestions to alter the ramen flavor to suit foreign tastes, Chairman Shin insisted on maintaining the spiciness. He persistently persuaded employees, saying, "Korean taste will become the most global taste." This determination resulted in the 'most delicious ramen in the world.'

Shin Ramyun is priced three to four times higher than Japanese ramen in the U.S. market. It is sold not only through major U.S. retail channels such as Walmart but also in key government facilities, becoming the first ramen to be stocked there. In China, it has captivated consumers with Korea's unique spicy flavor. Nongshim achieved overseas sales of 1 trillion won last year. The overseas sales ratio exceeded 40% of total sales for the first time. It is said that Chairman Shin smiled brighter than anyone when The New York Times selected Shin Ramyun Black as the world's best ramen last year in New York.

Chairman Shin created flavors familiar to Koreans through ramen and snacks. His ramen evolved from food that alleviates hunger to convenience food reflecting individual preferences. It has been deeply connected with people's lives, sharing joys and sorrows. Nongshim, under Chairman Shin, has been recognized beyond Korea in the global market through a history of relentless challenges.