[Smart Startup Era] "600kg of Ginseng Burned to Ash... Now It Has Become Precious"

Overturning Ginseng Fields... Geumsan Demanded Government Purchase
Kakao Makers 'Jegabeochi' Project Participation
PB Product Expected to Generate 1 Billion KRW in Sales... New Product Development Accelerates

"The price of ginseng plummeted so much that we held a bonfire ceremony and even plowed over ginseng fields. It was that difficult. We concluded that farmers had no choice but to compete online to survive."

Son Won-seok, chairman of the Geumsan Ginseng Cooperative, is harvesting ginseng in a ginseng field in Geumsan-gun, Chungnam on the 30th. Photo by Kang Jin-hyung aymsdream@

Son Won-seok, the head of the Geumsan Ginseng Cooperative, has been farming ginseng for three generations in Geumsan, Chungnam. However, after the COVID-19 outbreak in 2020, the price of ginseng collapsed, putting them at a life-or-death crisis. Demand for ginseng decreased and export routes were blocked. Feeling it was impossible to endure any longer, farmers in Geumsan urged the government for measures, holding a bonfire ceremony where 600 kg of fresh ginseng was burned and plowing over ginseng fields. At that time, at the Geumsan Fresh Ginseng Center, a bundle of 10 fresh ginseng roots (750g) was traded at around 30,000 KRW, which was about 25% lower than pre-COVID prices.

Son explained, "Some have devoted their entire lives to ginseng farming for as short as five years or as long as over 50 years. While all prices rose, the price of ginseng remained the same as 20 years ago, which deeply distressed the farmers." However, they could not just wait endlessly for the government to purchase ginseng. They had to find a self-help solution. That’s when they encountered Kakao Makers’ 'Jegabatchi' project. After hearing the farmers’ plight, Lee Ji-seung, the manager in charge of the Jegabatchi project, personally reached out saying, 'Let’s overcome this difficulty together.'

Jegabatchi is a project that helps resolve oversupply and supports sales channels so that our agricultural, livestock, and fishery products can be sold at their 'true value.' It promotes brands through storytelling and sets a target quantity for a certain period to avoid leftover stock. Since products are sold directly from farms without middle distribution, consumers can purchase goods at affordable prices. A particular advantage is that anyone can conveniently buy through the KakaoTalk application, which is used nationwide.

Foreign child participating in the Geumsan Ginseng Festival [Source=Geumsan Festival Tourism Foundation]

The impact of KakaoTalk exceeded expectations. In the first project, about 8 tons of ginseng were sold, achieving record-breaking results. Son said, "High-quality and fresh agricultural products are supplied to consumers, greatly supporting farmers," and added, "Rural areas must promote local products and enhance brand value in step with the digital era."

They worked tirelessly to create ginseng processed foods that young people would like. Son said, "Raw ginseng had become something young people just stored in the freezer," and "We did not neglect efforts to develop new products that can be consumed directly." The market already has countless types of health functional foods, so for ginseng to be competitive, it had to be processed into easy-to-eat forms. They developed various products using domestic ginseng, from red ginseng chips that can be eaten like desserts, to red ginseng extract simmered for 72 hours, and convenient red ginseng sticks.

Son Won-seok, chairman of the Geumsan Ginseng Cooperative, is showing a handwritten letter from a customer who regained health through Geumsan ginseng. Photo by Kang Jin-hyung aymsdream@

They also produced a 6-year-old red ginseng extract set as a Kakao private brand product. Since it was sold under the Kakao name, they took great care, including safety and quality inspections by experts. As a result, since sales began in January last year, about 18,000 sets have been sold, with sales revenue nearing 1 billion KRW. Geumsan ginseng has also gained recognition overseas. Son explained, "Orders for ginseng came from Vietnam, where KakaoTalk services are widespread, and products were exported to Sichuan Province in China," adding, "Geumsan ginseng is evaluated for its consistent taste and aroma, as well as high levels of effective components such as saponins."

In November last year, Son received a thank-you letter from a customer he had never met. Mr. Na, who lives in Yeongam-gun, Jeonnam, sent a handwritten letter to Son. The letter began with the sentence, "I am grateful because my wife regained her health after eating Geumsan ginseng." Son said, "Hearing stories about such effects from eating ginseng makes me proud as a farmer." He added, "Participating in the Jegabatchi project gave me courage and hope," and said, "I will develop even higher-quality products so that positive reviews and comments increase and repurchases occur."