[Report] "Export Share of 'Ssun Kimchi' with Convenient Fork Use Increased by Over 90%"

Jeonbuk Iksan Kimchi Global Factory... Critical Focus on North American Market
All-in Export Management with Sun Kimchi and Sauces to Target US Market with High Fork Usage
Entry into Walmart... "Promotional Strategy of Eating Kimchi on Bread Expected to Be Effective"

[Iksan=Asia Economy Reporter Moon Chaeseok] "Exports will focus mainly on sliced kimchi, and the proportion of whole cabbage kimchi will be reduced. Sliced kimchi can be eaten by foreigners using a fork. To target the North American market, which accounts for 90% of export volume, we plan to increase the export share of sliced kimchi to over 90%."

Export kimchi made at the advanced global kimchi factory in the National Food Cluster, Wanggung-myeon, Iksan-si, Jeollabuk-do. (Photo by Moon Chaeseok)

Park Beomdon, the production manager of the advanced global kimchi factory in the National Food Cluster in Wanggung-myeon, Iksan-si, Jeollabuk-do, emphasized on the 25th that establishing a good localization strategy is crucial to activate kimchi exports. He stated that it is important to develop various food products such as sliced kimchi, which is easier to eat than whole cabbage kimchi, as well as sauces. The 'export management' strategy was the key to Korea's kimchi export value reaching an all-time high from January to September this year.

One-stop production and management... Production process automation

The feature of this factory is that production, manufacturing, and packaging are all handled at once on the first-floor manufacturing building. Quality control is also conducted in the same building to improve work efficiency.

Upon entering the manufacturing building, winter napa cabbages brought from Haenam-gun, Jeollanam-do, were piled in storage baskets. In winter, cabbages are sourced from Haenam-gun, and in summer from Gangwon-do. The factory official explained that Haenam winter cabbages have higher quality than Gangwon-do summer cabbages, which are widely known as 'highland vegetables.'

The factory’s equipment and space layout were meticulously designed. First, the factory floor and facilities were solidly reinforced, considering the characteristics of producing a lot of waste due to heavy use of salt and water. The cooling facilities were installed on the sides rather than the ceiling to ensure smooth ventilation, which also caught attention.

We observed the kimchi production line for exports to the U.S. and other countries. After passing through a chilly cabbage storage room cold enough to cause frost, the salting facility appeared. Sliced cabbage is put into a large machine about 20 meters long to be salted. This is the stage just before removing insects and other byproducts, and it is said that the quality of kimchi is essentially determined here.

As a smart factory equipped with IoT (Internet of Things) and other facilities, the kimchi factory and storage conditions are designed to be monitored in real time. During the mixing process of salted cabbage with seasonings and various vegetables, antenna communication allows tracking of the kimchi’s production history and storage location.

All manufacturing processes for export sliced kimchi?including slicing, salting, washing, seasoning, packaging, and transportation?are conducted through automated equipment. IoT sensors and IP cameras are installed throughout the production process to monitor temperature, humidity, and salinity in real time. This is to maintain a consistent taste for each product. The automated process produces 1,500 bags per hour (1 bag = 20 kg).

When the optical sorter determines whether salted cabbage is usable, workers in teams of four finally remove byproducts such as insects, twigs, and green leaves. Overseas customers do not prefer cabbages with many green leaves because they feel tough in texture. They remove about 30 tons of cabbage byproducts daily. After passing X-ray inspection, the product is labeled 'KIMCHI' and exported.

"Monthly export of 110 tons of sliced kimchi... Targeting the U.S. including Walmart"

Park Beom-don, the production manager of Pulmuone Global Kimchi Factory in the National Food Cluster, Wanggung-myeon, Iksan, Jeonbuk. (Photo by Ministry of Agriculture, Food and Rural Affairs)

Attention to detail was evident not only in the production process but also in management strategies. For example, instead of adding salted seafood to export sliced kimchi, charcoal is placed inside the lid to minimize odor. This strategy targets local vegans. Raw materials such as garlic, ginger, and vegetables are domestically sourced to enhance quality.

This factory, with a production capacity of 11 tons per month (1 ton per container), succeeded in placing export sliced kimchi in Walmart stores in the U.S., recording sales of 17.4 billion KRW last year. According to Manager Park, the factory ranked first in the U.S. kimchi market share as of 2019.

The management strategy, which is almost 'all-in' on exports, also attracted attention. Rather than simply focusing on increasing sliced kimchi exports, the factory is investing in research and development (R&D) of various sauces and powders using diverse vegetables. To increase market share in the U.S., they believe it is necessary to establish a kimchi-specific domain that can compete with strong rival foods such as 'nacho sauce.' Along with investment in R&D, they plan to expand export lines by utilizing vacant land and target not only North America but also markets in China and Japan.

According to the industry, although whole cabbage kimchi overwhelmingly dominates in taste and storability, voices are emerging that diversity and convenience such as sliced kimchi and sauces must be secured to expand exports. Competition among domestic companies for production and marketing for overseas expansion is intensifying, and Manager Park emphasized that the Korean kimchi industry’s leap forward will accelerate as such 'export-customized management' becomes more active.

This industry management strategy is gradually yielding results. According to the Korea Customs Service, Korea’s kimchi export value from January to September this year was $123.81 million (about 148.1 billion KRW), on track to surpass last year’s record high of $144.51 million (about 172.8 billion KRW). A surplus of $26.24 million (about 3.14 billion KRW) was recorded from January to September this year, marking a near turnaround to positive after 12 years since 2009 (surplus of $23.05 million, about 2.76 billion KRW).

Manager Park said, "Since the seasonings used for the main ingredient, napa cabbage, are the same for both sliced and whole cabbage kimchi, the nutrition is the same, and whole cabbage kimchi tastes slightly better." However, he predicted, "Considering the convenience of eating sliced kimchi with a fork, it would be more effective to promote it graphically by showing sliced kimchi or sauces placed on bread rather than whole cabbage kimchi to locals."

He emphasized, "While it is important to enhance the value of whole cabbage kimchi, which is a unique Korean culture, to popularize kimchi worldwide, it is necessary to diversify products such as sliced kimchi and sauces for dipping with dumplings. Especially, sliced kimchi has the advantage of lowering costs through automated processes and making sterilization and freezing processes more efficient."