"45% Discount Means Virtually No Profit"... Baek Jong-won Responds to Controversy Over Baek Ham Being More Expensive Than Spam

Price Controversy Over Company's Canned Ham 'Baek Ham'
Higher Price Than Competitors Despite Lower Content

Baek Jong-won, CEO of The Born Korea, directly addressed the price controversy surrounding the company’s canned ham gift set ‘Baek Ham,’ which was sold at a 45% discount targeting the Lunar New Year.

Previously, Baek introduced on his YouTube channel with 6.72 million subscribers that a set of nine 200g Baek Ham cans would be sold at 28,500 won, discounted 45% from the original price of 51,900 won. However, this sparked controversy over ‘deceiving viewers.’ It was revealed that open market prices were already in the 30,000 won range, and with additional discounts, consumers could purchase at prices similar to the ‘shock price’ Baek presented. The fact that the price was higher than the regular price of CJ CheilJedang’s iconic canned ham ‘Spam’ also caused debate. It was also mentioned that Baek Ham contains less pork than Spam.

As the controversy grew, on the 26th, Baek posted a video titled “The Born News: A Word About Baek Ham,” claiming, “A 1,500 won margin per set occurs at a 45% discount, but including company operating costs, the margin is effectively zero.” He explained that since the product was made with the intention of helping Korean pork farmers by using less popular cuts of Korean pork, there was almost no profit.

He also emphasized that “Baek Ham contains 85% Korean pork, while Spam contains 92% imported pork,” highlighting that unlike competing products, Baek Ham is made with Korean pork. Regarding the pork content, he explained, “The difference in meat content per 200g is about 14g, and the cost of 14g of meat is less than 100 won. Would we reduce meat content just to save 100 won?” He added, “Since it was developed for budaejjigae (army stew), seasoning ingredients (additional components) were included. Our unique seasoning is added to enhance the umami flavor in the broth when boiled.”

He continued, “It’s embarrassing, but as a latecomer, production costs are naturally higher. Compared to companies that mass-produce, small-scale production causes a significant cost difference. When a mass production system is established and production costs decrease, we will lower the price.”

Despite the explanation, criticism did not subside easily. Within 14 hours of the video’s release, over 4,600 comments were posted. Many critical opinions included, “Claiming goodwill to help Korean pork farmers but admitting there is no merit for consumers to buy,” “If they hadn’t advertised a 45% discount from the start and just said they would work hard as a latecomer, there would have been no controversy,” and “Where is CEO Baek who scolded other restaurants for selling at such high prices on ‘Baek’s Alley Restaurant’?”