[Reporter’s Notebook] Why Koreans Don’t Smile Even at the ‘K-Bread Re-Export’ Success

SPC Paris Baguette enters Italy, the heart of European bakeries
Public sentiment remains cold despite K-bakery's milestone
Reputation risks from Chairman Huh Young-in and others weigh on SPC's future

SPC Paris Baguette is entering Italy, the largest bakery market in Europe worth 30 trillion won annually. On the 24th, Huh Young-in, chairman of SPC Group, signed a franchise agreement with the Italian coffee brand Pascucci. SPC, which imported coffee from Italy 20 years ago, is now re-exporting bread, known as the "history of the West." It is a great occasion that bread made with Korean-style recipes will be sold in the birthplace of bread.

Koreans have a strong desire for overseas recognition. This can be seen from the popularity of so-called "gukppong" content such as "foreigners' reactions to BTS music videos" and "Americans' frozen gimbap challenge." One scholar described this as "a process of gradually recovering long-suppressed self-esteem." However, public opinion is lukewarm about Paris Baguette's re-export. Negative comments have appeared instead, such as "remembering worker deaths," "the main cause of bread price increases," and assertions that "domestic market discrimination will be severe."

Why do consumers get angry even at good news? An SPC official called it the "stigma effect." Because the company is hated due to past mistakes, small errors appear larger and achievements are belittled. On the 25th, prosecutors summoned Chairman Huh as a suspect. He is accused of forcing bakers of the Paris Baguette branch of the Korean Confederation of Trade Unions to quit the union. Chairman Huh is also suspected of bribing investigators through CEO Hwang Jae-bok to leak information. The reason SPC is disliked can be seen as connected not only to the stigma effect but also to various current allegations.

Starting from a small bakery in Ongjin, Hwanghae Province in 1945, SPC has grown into the largest bakery company in Korea. However, in recent years, various controversies have led to boycotts, gradually cracking the company’s image. A food industry insider who worked at Paris Baguette said, "Now is the era when Coupang even delivers cakes," adding, "If things continue like this, its status could change within five years."

To shake off the hatred in consumers’ hearts, SPC must provide workers with a safe working environment and become a more generous company. Above all, suspicions about the owner’s immorality must be eliminated. Recently, "value consumption," where mainly the MZ generation (Millennials + Generation Z) prefers to buy products from ethical companies even if they are a bit more expensive, is spreading. If things continue as they are, reputation risk will become a heavy burden for SPC’s future.