In the Past, Koreans Said "How Can People Eat This?"... Now, with Global Orders Surging, a Decision to Produce "2.5 Billion Units Annually"

Samyang Foods Expands Milyang Plant 2... Production Increase
Global Popularity Drives Demand Beyond Supply
New Plant Operation Expected to Boost Sales to 2.4 Trillion KRW by 2026

The Danish government recently decided to recall three types of Samyang Foods' Buldak Bokkeummyeon (Nuclear Buldak Bokkeummyeon 3x Spicy, 2x Spicy, and Buldak Bokkeumtangmyeon). The reason was not due to quality issues but because it was 'too spicy.' The Danish government stated that 'the capsaicin content is too high, posing a risk of acute poisoning.'

This is the first time that Buldak Bokkeummyeon, sold in 128 countries, has been recalled for being too spicy. Local consumers in Denmark may be upset by this decision. Buldak Bokkeummyeon has become so popular worldwide that supply cannot keep up with demand.

Even Koreans who enjoy spicy food initially reacted with disbelief, saying, 'How can people eat this?' This product sold 91 million units last year alone. Considering the world population is 8.1 billion, it means that 1 in 100 people on Earth has tried Buldak Bokkeummyeon.

As orders for Buldak Bokkeummyeon surged worldwide, Samyang Foods finally made a decisive move. They decided to further expand the production lines at the second Miryang factory, which will be built in 2025. By 2026, Samyang Foods' annual production capacity will exceed 2.5 billion units.

Samyang Foods Decides to Expand Miryang Second Factory Amid Surging Orders... Production Capacity to Reach 2.5 Billion Units by 2026

According to industry sources on the 14th, Samyang Foods' annual production capacity is expected to increase by 37%, from 1.8 billion units this year to 2.5 billion units in 2026. Initially, the 2026 production capacity was expected to be 2.4 billion units, but after Samyang Foods decided on June 5 to expand the investment scale for the Miryang second factory, it will increase by an additional 100 million units. Samyang Foods announced plans to build the Miryang second factory last August, initially planning to construct five production lines, but due to unexpectedly high orders for Buldak Bokkeummyeon, they decided to build six production lines.

Assuming the Miryang second factory begins full operation in July 2025, Samyang Foods' production capacity will increase from 1.956 trillion KRW this year to 2.0763 trillion KRW in 2026. Additionally, Samyang Foods' sales are expected to expand to 2.3643 trillion KRW that same year. This represents approximately a 48% increase compared to this year's estimated sales of 1.5994 trillion KRW.

Han Yoo-jung, a researcher at Hanwha Investment & Securities, explained, "With the recent announcement of the expanded investment plan for Samyang Foods' Miryang second factory, additional supply volume expansion is expected," adding, "As a result, earnings forecasts have also been revised upward." She further noted, "After the completion of the Miryang second factory, export regions will expand to Central and South America and Europe, leading to increased sales of new products beyond the original and carbo flavors."

Kim Jeong-su, Vice Chairman of Samyang Round Square

Vice Chairman Kim Jeong-su, Who Predicted a New Era of Spiciness in 2011... Consumed 1,200 Chickens and 2 Tons of Sauce to Develop Buldak

The story behind the release of Buldak Bokkeummyeon in April 2012 is well known. In 2011, Samyang Foods' Vice Chairman Kim Jeong-su visited Myeongdong with his daughter and saw a long line of people waiting to eat spicy food. Convinced that a new frontier of spiciness was about to open, Vice Chairman Kim began research with the concept of 'extremely spicy stir-fried noodles.' A researcher involved in the development recalled, "To create Buldak Bokkeummyeon, we consumed 2 tons of sauce and 1,200 chickens while striving to find the optimal sauce ratio."

The popularity of Buldak Bokkeummyeon transformed Samyang Foods from a small company with sales of 325.8 billion KRW in 2012 into a company with sales exceeding 1.1929 trillion KRW last year. Initially, Buldak Bokkeummyeon gained fame through 'spicy ramen eating challenges' on YouTube. The well-known YouTuber Josh, known as 'Korean Englishman,' started by filming himself and friends struggling to eat Buldak Bokkeummyeon. Subsequently, other YouTubers posted challenge videos, spreading awareness worldwide and turning it into a global hit product. Famous food YouTuber Matt Stonie's challenge video surpassed 140 million views.

Buldak Bokkeummyeon is now consumed as part of everyday life by the general public, not just by enthusiasts' challenge videos. Along with the original flavor, the popularity of Carbo Buldak Bokkeummyeon has surged, causing stock shortages at Costco and Walmart in the United States. Recently, famous American female rapper Cardi B posted a Carbo Buldak video on her TikTok account, saying, "I drove for 30 minutes just to buy this product."

Video review of American rapper Cardi B trying Carbo Buldak Bokkeummyeon (left) and a screenshot of an American girl shedding tears of joy after receiving Carbo Buldak Bokkeummyeon as a birthday gift

Samyang Foods' Market Cap Rises to Second Among Food Companies on News of Supply Expansion... Will It Surpass CJ CheilJedang?

Following the news of additional expansion of the Miryang second factory amid stock shortages, Samyang Foods' stock price is soaring. This has put Samyang Foods in contention for the top spot among domestic food stocks. As of the 13th, Samyang Foods' market capitalization was 4.5951 trillion KRW, surpassing Nongshim (3.3515 trillion KRW) and Orion (3.8983 trillion KRW). If this stock price surge continues, expectations are growing that it could surpass CJ CheilJedang (5.7281 trillion KRW), the current market cap leader.

Especially overseas, Buldak Bokkeummyeon's rapid growth continues. Even looking at the first quarter of this year, the growth of overseas subsidiaries stood out. Overseas subsidiary sales reached 288.9 billion KRW, an 83% increase year-on-year. North American subsidiary sales were 56.5 million USD (about 77.1 billion KRW), up 209.8% from a year earlier, and during the same period, the Chinese subsidiary recorded 500 million yuan (about 94.2 billion KRW), a 194% increase.

Hanwha Investment & Securities recently raised Samyang Foods' target stock price from 710,000 KRW to 800,000 KRW. A researcher said, "As earnings forecasts rise sharply along with the stock price, there is no burden regarding valuation (stock price level relative to earnings)."