South Korean food companies are accelerating their overseas expansion. (Image courtesy of Yonhap)
SEOUL, March 17 (Korea Bizwire) — As the global appetite for K-food continues to grow, South Korean food companies are accelerating their overseas expansion, aiming to reduce reliance on the domestic market and tap into high-growth international sectors.
Among them, Samyang Foods has emerged as a standout, propelled by the overseas success of its Buldak Ramen. Last year, the company posted a record-high operating profit of 344.2 billion won ($260 million), with international sales accounting for 77% of total revenue in the third quarter of 2024.
Ottogi’s Ambitious Overseas Push
Joining the international race, Ottogi—a company historically focused on the domestic market—is now ramping up its global footprint. Last year, it upgraded its global business unit and appointed Kim Kyung-ho, a former LG Electronics executive, as its new Vice President of Global Operations.
However, international sales remained modest at 332.5 billion won ($250 million), only 9.6% of total revenue in 2024. In response, Ottogi has set an ambitious target: tripling overseas revenue to $1.1 billion by 2030.
The company is focusing on existing subsidiaries in the U.S., Vietnam, China, and New Zealand, with Vietnam as a key production hub. Its Hanoi factory, operational since 2018, recently obtained Halal certification, allowing Ottogi to expand into Indonesia, the Middle East, and Africa, tapping into a 1.9 billion-strong Halal market.
In the U.S., Ottogi launched “Ottogi Food America” in August 2024 and is preparing to build a new production facility in La Mirada, California, near its existing North American headquarters. A company official stated, “We are considering local production of sauces, ramen, and ready-to-eat meals, but construction timelines are still pending regulatory approvals.”
HY Targets Probiotic Beverage Market in China, U.S., and Southeast Asia
Another domestic giant, hy (formerly Korea Yakult), is making a bold entry into the global fermented dairy and probiotics market. While overseas revenue was minimal in 2024—just 3 billion won ($2.2 million), or less than 1% of total sales—the company aims to increase it to 50 billion won ($37 million) by the end of 2025.
Its flagship product, the “Will” probiotic yogurt, sells 200 million units annually in South Korea, generating 330 billion won ($250 million) in domestic revenue. However, international sales have been negligible—until now.
China is the first major target. Last October, hy began selling Will on leading Chinese e-commerce platforms, JD.com and Douyin Mall, using cold-chain distribution. It is now expanding to physical supermarkets and convenience stores in major cities. To boost brand recognition, actor Lee Min-ho and (G)I-DLE’s Yuqi have been signed as ambassadors.
In the U.S., hy entered H-Mart, the country’s largest Asian grocery chain, in February. Currently, 20 H-Mart locations on the West Coast carry Will, with plans to expand nationwide based on market reception.
In Thailand, hy has partnered with Dutch Mill, a major dairy company, to locally manufacture its products. The company is also exploring OEM (Original Equipment Manufacturer) partnerships to further scale its Southeast Asian operations.
Shifting from Domestic Dependence to Global Growth
Both Ottogi and hy acknowledge that their domestic market strategies are no longer sustainable.
“The domestic market is too sensitive to economic fluctuations, and we need to overcome these limitations,” a hy spokesperson said. “Expanding internationally will reduce dependence on local demand and secure long-term growth.”
Additionally, the company aims to position itself as a leader in probiotics exports, stating, “Korea has long imported probiotics, but now we want to showcase our advanced fermentation technology on a global scale.”
As competition in the global food industry intensifies, South Korea’s top food brands are betting big on international expansion, ensuring that K-food remains a dominant force worldwide.
Ashley Song (ashley@koreabizwire.com)
