South Korean instant noodle maker Nongshim, famous for its Shin Ramyun-brand instant ramen, is investing 229 billion won (about $165 million) over the next three years to expand its logistics operations in the country’s coastal city of Ulsan amid growing appetite for the popular Korean food.
Nongshim, founded by the brother of the late Lotte founder Shin Kyuk-ho, disclosed the investment plan last week in a securities filing. The company’s shares have risen about 40% so far this year on the back of hot demand for Korean instant ramen.
Stocks of rivals also surged: Samyang Foods, maker of the super-spicy “Buldak” noodles, is up 190% and Ottogi is up almost 25% over the same period. Nongshim is the second largest instant noodle maker in South Korea, with a market cap of 3.5 trillion won, after Samyang Foods.
Korean ramen exports globally are projected to hit a record $1 billion this year, up from $952.4 million in 2023. In April, Korea’s monthly export for ramen reached a record $108.6 million, according to the Korea Customs Service.
The demand for instant ramen is fueled by the growing popularity of Korean TV shows and movies, which feature the popular Korean food. For example, the Oscar-winning movie Parasite included a scene in which a housekeeper mixed two types of Nongshim noodles.
Nongshim itself reported record revenues of 2.6 trillion won ($1.9 billion) for fiscal year 2023, up 8.7% from the previous year, while net profit was up 49% to 115 billion won, also a record. The growth was fuled by Nongshim’s Shin Ramyun, whose sales surged by 19% from the previous year, accounting for almost half of Nongshim’s overseas sales growth.
“Overseas, we achieved high growth with Nongshim America which initiated the operation of its 2nd plant, which played a pivotal role,” Nongshim CEO Lee Byeong-hak said in its annual report. Nongshim’s market share in the U.S. instant noodle market was 25.3% in 2021, the company said in its annual report, citing Euromoniter data.
“Nongshim America has achieved an over 10% growth each year since 2010. We ignited the craze for Korean instant noodles by drawing on the booming K-contents, from the film Parasite to the drama Squid Game, and have since demonstrated the competitive edge of instant noodles as easy meals to make at home in the U.S. market,” Lee added.
Nongshim itself has made efforts to boost the popularity of its instant ramen through marketing and research and development. For example, the company advertized on popular TV shows like Gordon Ramsay’s Hell’s Kitchen and developed localized flavors, such as Stir Fry Shin Ramyun Tomyum for the Thai market.
Nongshim was founded by Shin Choon-ho, known as South Korea’s “ramen king,” in 1965 as Lotte Industrial Company. Shin died in 2021 at age 90; his eldest son, Shin Dong-won, now serves as chairman of Nongshim, based in Seoul.
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