[2022 National Audit] CJ CheilJedang and Ottogi "Considering Replacing Domestic Rice with Imported Rice in Products"

Im Hyeong-chan, Vice President of CJ CheilJedang, is attending the National Assembly audit on the Ministry of Agriculture, Food and Rural Affairs held on the 4th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Song Seung-yoon] Food companies such as Ottogi and CJ CheilJedang announced on the 4th, during the National Assembly's Agriculture, Forestry, Livestock, Food, and Maritime Affairs Committee's audit of the Ministry of Agriculture, Food and Rural Affairs, that they will consider measures to increase the use of domestically produced rice.

On this day, Hwang Seong-man, CEO of Ottogi, Lim Hyung-chan, Vice President of CJ CheilJedang, Park Min-gyu, CEO of Orion Nonghyup, and Park Sang-gyu, CEO of Nongshim Flour Milling, appeared as witnesses at the audit.

In response to questions from Lee Won-taek and Ahn Ho-young, members of the Democratic Party of Korea, regarding the use of U.S.-produced rice, Vice President Lim Hyung-chan of CJ CheilJedang said, "A small amount of imported rice is used in some cupbap (cup rice) products, and we will consider replacing it with domestic rice."

Lim added, "As of last year, we used 60,000 tons of domestic rice and 2,000 tons of imported rice, and all Hetbahn (ready-to-eat rice) products, which make up most rice processed products, use domestic rice. We will strengthen our R&D capabilities to replace the imported rice used in cupbap products with domestic rice."

On the 4th, Ahn Ho-young, a member of the Democratic Party of Korea, questioned Lim Hyung-chan, Vice President of CJ CheilJedang, about the use of American rice in Hetbahn and the price increase during the audit of the Ministry of Agriculture, Food and Rural Affairs held at the National Assembly. Photo by Yoon Dong-ju doso7@

Regarding the inquiry about the price increase of Hetbahn products despite the plunge in rice prices, he explained, "rice accounts for 50% of the manufacturing cost of Hetbahn, and excluding that, the costs of packaging materials, gas, logistics, and labor have surged, making the price increase inevitable."

Hwang Seong-man, CEO of Ottogi, also said, "All domestically distributed products are made with domestic rice, and only products exported abroad use imported rice due to cost reasons. We will consider replacing it with domestic rice through consultations with our partners."

Similarly, Park Sang-gyu, CEO of Nongshim Flour Milling, who appeared as a witness, said, "Although the dependence on imported rice is high, we will strive to switch to domestic rice use even if it takes time." Park Min-gyu, CEO of Orion Nonghyup, responded to the same question by saying, "We already use 100% domestic rice in our products."