Nongshim Basic Salary 170% Paid Uniformly at Last Year-End
Ottogi Also at Least 100% of Basic Salary
Samyang Foods, Differential Payment by Job Group and Position
Last year, major ramen companies that contributed to ramen export revenue surpassing 1 trillion won for the first time ever were found to have paid performance bonuses exceeding twice the basic salary to encourage and boost the morale of their employees.
According to the industry on the 31st, Nongshim paid all employees an amount equivalent to 170% of their basic salary at the end of last year. This represents a 40 percentage point increase from the previous year’s 130%, applied uniformly regardless of business division or rank. This reflects the strong sales performance of ramen and popular products such as 'Meoktaekgang' in domestic and overseas markets, despite challenging management conditions including rising raw material prices.
According to financial information firm FnGuide, Nongshim’s annual sales consensus for last year was 3.4215 trillion won, up 9.34% from the previous year. Operating profit was expected to reach 229.8 billion won, a 104.87% increase compared to the previous year.
Notably, the flagship product 'Shin Ramyun' recorded domestic and overseas sales of 1.21 trillion won last year, a 14% increase from the previous year, marking an all-time high. Overseas sales through subsidiaries and exports accounted for about 60% of the total, reaching 710 billion won.
Specifically, the U.S. subsidiary’s Shin Ramyun sales grew 19% year-on-year, accounting for about half of the increase in overseas sales. This was due to expanded supply through the second U.S. factory, which began operations in May 2022, and significant sales growth centered on major U.S. retailers such as Costco and Walmart. Shin Ramyun sales at subsidiaries in Japan, Australia, and Vietnam also rose 19%, 26%, and 58%, respectively, compared to the previous year.
Ottogi also completed performance bonus payments to all employees at the end of last year. Ottogi’s sales consensus for last year is projected at 3.5463 trillion won, up 11.40% from the previous year, with operating profit expected to rise 34.71% to 250.1 billion won. Ottogi is characterized by handling a variety of products including sauces and frozen foods, with a higher domestic sales ratio compared to competitors. An Ottogi official said, "Performance bonuses are paid annually at the end of the year based on results. Although there are differences depending on business division and rank, the minimum is over 100% of the basic salary."
In addition, Samyang Foods also completed the deposit of last year’s performance bonuses to employees on the same day. Samyang Foods announced that its consolidated sales for last year, tentatively tallied on the day, reached 1.1929 trillion won, a 31% increase from the previous year. Operating profit rose 62% to 146.8 billion won. The company explained that this is the first time sales exceeded 1 trillion won and operating profit surpassed 100 billion won, marking the highest performance since its founding.
Samyang Foods significantly expanded overseas sales through overseas subsidiaries and its domestic Miryang factory, focusing on popular products such as Buldak Bokkeum Myun. Specifically, overseas sales in the third quarter of last year surpassed 200 billion won for the first time, and in the fourth quarter, sales of 13 billion won were recorded during China’s largest shopping festival. In the U.S., the company completed entry into Walmart and Costco and is accelerating efforts to enter the alcoholic beverage channel.
A Samyang Foods official said, "Since introducing an annual salary system three years ago, the scale of performance bonuses has been differentiated by business division and rank, and the exact amounts are known only to the individual. Last year, performance bonuses were paid in two installments, in the first and second halves of the year, and the method is adjusted annually according to circumstances."
Meanwhile, according to the Korea Agro-Fisheries & Food Trade Corporation (aT), Korea’s ramen export value last year reached $952.4 million (approximately 1.2757 trillion won), a 24.4% increase from the previous year, setting a new record high.
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