Spicy Chicken Sold Like Hotcakes... Samyang Foods Likely to Join '1 Trillion Won Club' in 60 Years

Last Year Operating Profit Securities Firms' Forecasts Revised Upward
Operating Profit Expected to Surpass 150 Billion Won
Thanks to Buldak, Overseas Sales Share Soars to 70%

Samyang Foods is expected to record its highest-ever sales last year, thanks to the global 'spicy ramen' craze sparked by 'Buldak Bokkeummyeon.' It marks 60 years since the launch of Korea's first instant ramen, 'Samyang Ramen,' in 1963. Once overshadowed by competitors like Nongshim, Samyang Foods is transforming into an export company with over 70% of its sales coming from overseas, riding the wave of the K-ramen boom.

According to the consensus of securities firms compiled by the securities information company FN Guide on the 23rd, Samyang Foods is estimated to have recorded an operating profit of 152 billion KRW last year. This represents a 68.19% increase from 90.4 billion KRW a year earlier. Samyang Foods' operating profit was forecasted at 148.6 billion KRW just a month ago but has recently been revised upward to over 150 billion KRW. Park Sang-jun, head of corporate analysis at Kiwoom Securities, explained, "With the expansion of export volumes centered on the U.S. and China, Samyang Foods' operating profit is expected to exceed market expectations."

Last year's sales are likely to surpass 1 trillion KRW for the first time in history. The average forecast by securities firms estimates sales at 1.1922 trillion KRW, a 31.15% increase compared to the previous year.

Samyang Foods surpassing 1 trillion KRW in sales and 150 billion KRW in operating profit is an achievement 60 years after launching Samyang Ramen, Korea's first instant ramen, in 1963. Once pushed to the brink of bankruptcy by competitors like Nongshim, the company successfully revived itself thanks to the popularity of K-ramen driven by the success of K-content such as Korean dramas and YouTube mukbang videos.

Last year, Korean companies' ramen export value reached 952.4 million USD (approximately 1.2445 trillion KRW), a 24.4% increase from the previous year, setting a new record for exports. In particular, Buldak Bokkeummyeon, launched by Samyang Foods in 2012, is a representative figure of the spicy ramen syndrome. It is consumed through various mukbang content by domestic and international YouTubers and has been transformed into variations such as 'Buldak Ssambap' and 'Buldak Paengi Beoseot,' continuing its successful run. As of the third quarter of last year, the cumulative sales volume of Buldak Bokkeummyeon reached 5.3 billion units.

Accordingly, Samyang Foods is targeting over 90 overseas markets by launching not only the original flavor but also Yakisoba Buldak Bokkeummyeon and Tom Yum Buldak Bokkeumtangmyeon. In particular, in 2022, the company established 'Samyang America' in its largest market, the U.S., and actively expanded its distribution network.

As a result, the proportion of overseas sales, which was around 61% in 2021, is estimated to have increased to 70% last year and is expected to reach 74% this year. To keep pace with the explosive increase in overseas demand, Samyang Foods is building the Milyang 2nd factory, scheduled for completion in May 2025. An industry insider said, "With the stabilization of raw material input costs, the expansion of sales outlets in the U.S., and increased production capacity from the new factory in 2025, sales volume is expected to rise even further."

Meanwhile, thanks to the popularity of K-ramen, Nongshim and Ottogi also appear to have posted strong performances last year. Nongshim's operating profit is estimated to have risen 105.24% year-on-year to 230.2 billion KRW, surpassing 200 billion KRW for the first time. During the same period, sales are believed to have expanded by 9.28% to 3.4193 trillion KRW. Ottogi's sales increased by 10.02% to 3.5023 trillion KRW, and its operating profit is estimated to have grown by 42.09% to 263.8 billion KRW.