[Smart Startup Era] Meat Business Started with a Crate, 10 Billion KRW Sales Online

'Omma Ne Hanwoo' Grows into F&B Company
Transforms from Gyeongdong Market Small Merchant to Naver Seller
Actively Utilizes Big Data and Shopping Live

Editor's NoteThe number of small business owners in Korea is 7.2 million. One out of every ten people runs a business under their own name or signboard. Most small shop owners struggle to make ends meet. Last year, nearly 4 out of 10 small business owners (36.2%) operated at a loss. Additionally, 6 out of 10 (63%) saw their debts increase (data from the Korea Federation of Small and Medium Business). However, there are also people creating incredible success stories, such as a neighborhood butcher shop owner with annual sales of 10 billion KRW, or a fisherman in Wando, Jeonnam, selling 2 billion KRW worth of abalone annually. These are people who embraced the changes of the times and adapted to non-face-to-face and digital environments. Utilizing online platforms has become a prerequisite for startup success. Now, small business owners must go beyond an adversarial relationship with online platforms and actively leverage the platforms' capital, recognition, and technology to meet customers through 'smart startups.' We listened to the secrets of success from those who have succeeded in smart startups on the ground.

In 1987, Ms. Imae Lee headed to Gyeongdong Market carrying her 2-year-old son on her back. She laid out wooden crates and rubber basins on one side of the market and sold meat. It was a time when there were no refrigerators, and meat was placed on ice to be sold. After much hardship, when her business got on track, Ms. Lee opened a separate store and challenged herself to sell premium Korean beef (Hanwoo). The result was a complete failure. Customers said, "How can you charge 80,000 KRW per geun (600g)? Are you out of your mind?" She closed the store before the lease contract ended. However, Ms. Lee did not give up. In 2018, together with her two sons, she reopened an online premium Hanwoo specialty store. And in just three years, they achieved sales of 10 billion KRW. The Lee family is now running toward a goal of reaching 100 billion KRW in sales within the next five years.

This is the story of MommaNeHanwoo, which grew into an F&B company by selling only two-star Hanwoo on Naver Smart Store. We met the three family members who co-lead MommaNeHanwoo.

The Three Family Members Passionate About Meat, Pioneering the Two-Star Hanwoo Market

The three family members leading Umma-ne Hanwoo stood in the factory workshop in Namyangju-si, Gyeonggi-do. From the right, CEO Imae Lee, the mother; second son CEO Suhyeong Lee; and eldest son CEO Hanhyeong Lee. Photo by Younghan Heo younghan@

MommaNeHanwoo is a butcher shop that has been serving Gyeongdong Market since 1987. As regular customers kept coming, the eldest son, CEO Hanhyung Lee, decided to inherit the family business. After graduating from high school, CEO Lee immediately learned meat selection and cutting at a butcher shop in Majang-dong. This was in accordance with Ms. Imae Lee’s wish that he truly understand meat before taking over the store. The second son, CEO Suhyung Lee, also followed his older brother. He was so passionate about meat that he worked part-time in Majang-dong whenever he was on leave from the military.

The three family members, confident they knew Hanwoo best, decided to compete with two-star Hanwoo. Among Hanwoo grades 1++, 1+, 1, 2, and 3, two-star is the highest grade. It represents the top 0.1% in quality, with excellent taste and aroma, but is 25-30% more expensive than 1+ grade Hanwoo. CEO Hanhyung Lee said, "When we first started selling two-star Hanwoo, hardly anyone knew about it, let alone sought it out." He explained, "We opened a store selling only two-star Hanwoo because we wanted to promote it."

They opened a store near their existing butcher shop, but the response was cold. When they told regular customers it was 80,000 KRW per geun, customers just walked away. They were even looked at suspiciously as if they were trying to sell strange meat to make money. It was common to throw away unsold top-grade meat. The store they rented for two years was closed before the lease term ended.

Retrying Online... Huge Success with Data Marketing and Shopping Live

MommaNeHanwoo did not give up. This time, they knocked on the door of the online market. In 2018, they started selling two-star Hanwoo on Naver Smart Store. They kept their stubbornness of selling only two-star Hanwoo but lowered the margin to compete at a price 15-20% higher than 1+ grade Hanwoo.

The three representatives of 'Eommane Hanwoo' stood in the factory workspace in Namyangju, Gyeonggi Province. From the right, mother Im Mi-ae, second son Lee Su-hyung, and eldest son Lee Han-hyung. Photo by Huh Younghan younghan@

They hit the jackpot just before the Chuseok holiday in their first year. They expected fewer than 100 orders for holiday gifts, but over 1,000 orders flooded in. CEO Imae Lee hurriedly contacted long-term suppliers here and there to secure meat. While the meat supply was resolved, they ran out of ice packs to send with the orders. Swallowing tears, they had to cancel many orders and make apology calls. CEO Suhyung Lee recalled, "We were happy to exceed 100 million KRW in sales just from holiday gifts, but it was also bittersweet. It was a turning point that made us realize we needed a more systematic sales system."

They began actively using Naver Analytics, a tool that analyzes Smart Store visitor numbers and traffic sources. For example, when a search term related to a video of composer and singer Don Spike grilling a whole sirloin appeared, they sold sirloin chunk products. They also benefited from Naver Shopping Live, a live sales broadcast. The 'mukbang' (eating show) of grilling well-marbled bright red Hanwoo opened customers’ wallets. CEO Hanhyung Lee explained, "We were able to persuade customers who hesitated to buy just by reading detailed descriptions and reviews on Smart Store."

As sales surged, they changed their business model. Instead of keeping the store in Gyeongdong Market, they opened a factory in Namyangju, Gyeonggi Province. The 450-pyeong (approx. 1,488 m²) facility includes a raw meat refrigerated warehouse, packaging room, and finished product storage warehouse. Meat intake is handled by experts from the Animal and Plant Quarantine Agency, a public institution that grades livestock products. Afterward, the factory handles cutting, aging, packaging, and shipping.

Goal of 100 Billion KRW Sales Within 5 Years... Also Pursuing Hanwoo Exports

Sales continue to rise. Starting with 400 million KRW in 2018 when they first opened the Smart Store, sales grew to 1 billion KRW in 2019, 5 billion KRW in 2020, and 10 billion KRW in 2021. After switching to Naver Brand Store this year, they even achieved daily sales of 600 million KRW. Unlike Smart Store, which anyone can join, Brand Store requires meeting specific criteria (brand trademark rights, popularity, sales volume, etc.). They have grown from a butcher shop into an F&B company with a brand.

At the current pace, sales are expected to surpass 13 billion KRW this year. They worried sales might drop as people return to restaurants instead of buying meat online due to COVID-19, but that concern was unfounded. The repurchase rate exceeds 30%, and corporate customers are increasing. CEO Hanhyung Lee said, "Most importantly, the number of customers searching for and purchasing 'MommaNeHanwoo' has increased. It is encouraging that the brand is taking root."

They have set a goal to achieve 100 billion KRW in sales within five years, leading with two-star Hanwoo. Although competition has increased since they first started, the three CEOs are confident. Their mother’s experience and the two sons’ passion are the sources of their confidence. Specifically, they plan to expand categories from Hanwoo to pork and lamb based on their ability to selectively purchase Hanwoo. Their mid- to long-term goal is to export two-star Hanwoo overseas. They intend to shift their main customers from local regulars to global food material companies. Although foot-and-mouth disease outbreaks blocked export routes this year, they plan to try again once Korea regains its foot-and-mouth disease-free status.