OTOKI has begun a full-scale offensive in the global market by changing its English company name and selecting BTS member Jin as the global model for its representative product, "Jin Ramen."
While domestic demand is stagnant, the export value of K-ramen has been reaching record highs each year. Among the three major domestic ramen companies—Nongshim, Samyang Foods, and OTOKI—OTOKI has a significantly smaller share of overseas sales.
According to the Financial Supervisory Service's electronic disclosure system on the 6th, OTOKI will discuss changing its English name at its regular shareholders' meeting on the 26th. The proposal is to change the existing English name "OTTOGI" to "OTOKI." The goal is to make it easier for overseas consumers to pronounce OTOKI's name and to enhance brand recognition.
OTOKI is also focusing on global marketing. Recently, the company appointed BTS member Jin as the global model for "Jin Ramen." The packaging of "Jin Ramen" sold not only in Korea but also in the U.S., Canada, China, Vietnam, and Indonesia will feature Jin.
The reason OTOKI is placing great importance on expanding its overseas market this year is that it has been stagnant amid the K-ramen craze. According to a report titled "Trends and Implications of K-Food Exports Over the Past 10 Years," commissioned by the Korea Chamber of Commerce and Industry and analyzed by the Korea International Trade Association, K-food exports increased from $3.51 billion in 2015 to $7.02 billion in 2024. By item, ramen ranked first at $1.36 billion.
According to the financial data company FnGuide, last year, OTOKI's revenue forecast was 3.5 trillion won, an increase of 1.4% compared to the previous year (3.45 trillion won). Operating profit is expected to decrease by 5.7% to 240 billion won compared to 2023 (254.9 billion won). An industry insider noted, "It appears that the impact of the domestic slowdown and rising costs on the ramen business was offset by instant rice and curry and other general food products."
In contrast, its rival Samyang Foods recorded both its highest revenue and operating profit ever last year, thanks to the phenomenal popularity of its "Buldak Bokkeummyeon" overseas. Samyang Foods' share of overseas sales is close to 80%. Last year's revenue reached 1.73 trillion won, with operating profit rising by 45% and 133.4%, respectively, compared to the previous year.
Nongshim, ranked first in the industry, has an overseas sales share of about 37%. Compared to Samyang Foods, its overseas sales share is relatively small, which affected its performance amid the domestic slowdown last year. Last year, Nongshim's revenue reached 3.44 trillion won, a 0.8% increase compared to the previous year, but its operating profit was 163.1 billion won, a decrease of 23.1% from the previous year. To make up for this, Nongshim plans to establish an 'Okseon Export-Only Factory' in Busan to respond to the increasing export volume. This month, it will also establish a European entity in Amsterdam, Netherlands, to create a foothold for local penetration.
Compared to Samyang Foods and Nongshim, OTOKI's share of overseas sales is significantly smaller. OTOKI's overseas sales share was 11.4% in 2022, 10.7% in 2023, and around 10.9% in the first three quarters of 2024. OTOKI stated in its last year's ESG report that it aims to achieve global sales of 1 trillion won by 2028 to leap as a "global OTOKI." Considering that its overseas sales last year were approximately 330 billion won, it means that it must increase its overseas sales by threefold within five years.
To this end, OTOKI is preparing to establish a new production facility in California, USA. In 2023, it invested $10 million to expand the facilities at its Vietnam plant. Additionally, the company is preparing to produce halal-certified products targeting the Muslim market, making a concerted effort in the global market.
An industry insider commented, "The domestic market is in a saturation state, so the competition among ramen companies will take place in overseas markets. In the case of OTOKI, while overseas investment will increase short-term expenses, the share of overseas sales could grow to a meaningful level in the mid to long term."