Nongshim Chairman Shin Dong-won: "No Ramen Price Increase This Year"

"Flour Prices Don't Determine Ramen Prices"
Expansion of Domestic Export-Only Lines Due to Strong Overseas Exports
Considering Establishment of New Sales Corporation in Europe

"There are no plans to raise ramen prices this year."

Shin Dong-won, chairman of Nongshim, said this on the 22nd after concluding the shareholders' meeting at the headquarters in Dongjak-gu, Seoul. Recently, as the prices of raw materials such as flour have fallen, pressure to lower the prices of processed foods like ramen has begun.

Chairman Shin explained, "We will consider price reductions," but added, "Since some raw material prices have risen and others have fallen, it is not easy to adjust ramen prices based on just one item like flour."

Nongshim recorded its highest-ever figures last year with consolidated sales of 3.4106 trillion won and operating profit of 212.1 billion won. Operating profit increased by 89.1% compared to the previous year. More than half of the operating profit was earned overseas.

With strong overseas exports, Nongshim is considering expanding production lines at domestic factories. Chairman Shin stated, "We are also considering building export-dedicated ramen factories on existing secured sites such as Pyeongtaek (Poseung Factory) and Busan (Noksan Factory)."

Additionally, there are plans to establish a new sales corporation in Europe within this year. Shin Ramyun sales account for about 70% of Nongshim's ramen sales in the European region.

However, regarding the plan to build a third factory in the United States, he said, "Currently, due to rising land prices and labor costs in the U.S., we plan to review the construction costs over time."

Nongshim established a factory in the U.S. in 2005, and after demand surged following COVID-19, built a second factory in 2022. Currently, the production lines at this factory are being expanded.

Chairman Shin drew a line on the separation of the Nongshim Group's Mega Mart affiliate, saying, "There are no plans at the moment."

Meanwhile, Lee Byung-hak, CEO of Nongshim, presented three major priorities for the company: strengthening global market dominance, fostering new businesses, and advancing the profit structure.

CEO Lee said, "(Nongshim) has now established itself as a food company representing Korea, recognized both internally and externally," adding, "We will stably establish a mid- to long-term growth foundation in the U.S. market to pursue continuous growth, and secure meaningful market shares in key countries including China, Japan, Australia, and Vietnam."

He continued, "We will actively pursue discovering promising companies that can create synergy with Nongshim’s existing businesses, as well as startup investments, strategic alliances, and mergers and acquisitions (M&A)."