“We must become the 'bible of spiciness' in the future. Just as the mild spicy carbonara buldak is loved, we will show our commitment to further explore and refine the spiciness.”
Kim Jeong-su, CEO of Samyang Foods, said at the completion ceremony of the second factory in Miryang, Gyeongnam, on the afternoon of the 11th, “The star of buldak has just begun to ignite. We will not stop our preparations and efforts to keep it burning longer.”
The Samyang Foods Miryang factory consists of the first and second plants. As the popularity of the buldak stir-fried noodle series skyrocketed globally, foreign demand surged, prompting the establishment of the first Miryang factory in May 2022 to strengthen production capacity. As the popularity of the buldak stir-fried noodle series continued to rise, Samyang Foods built the second factory three years after completing the first factory.
◇Samyang Foods' Miryang second factory produces 840 million annually… Strengthening overseas export response capability
The Miryang second factory, which was completed about 15 months after breaking ground in March of last year, is a manufacturing facility covering an area of 32,989 square meters (about 10,000 pyeong). It has six production lines (three for bag noodles and three for cup noodles) built in a space consisting of one basement level and three above-ground floors, producing the buldak stir-fried noodle series.
According to Samyang Foods, the annual maximum production amount of the buldak stir-fried noodle series from existing production plants (Wonju, Iksan, and Miryang first factory) is 2.08 billion packs. With the full operation of the Miryang second factory, an additional 840 million packs will be produced annually, bringing the estimated maximum annual production of the buldak stir-fried noodle series to 2.92 billion packs.
Of this, 1.58 billion packs will be produced only in the Miryang first and second factories, accounting for about 50% of Samyang Foods' total export volume. Currently, Samyang Foods has entered various overseas markets, including China, the United States, Southeast Asia, the Middle East and Africa, and Europe. Notably, as Samyang Foods has experienced high growth centered on overseas markets, it appears to be strengthening its core infrastructure for targeting those markets.
According to the Financial Supervisory Service electronic disclosure system, Samyang Foods reported a revenue of 1.73 trillion won last year, a 45% increase from the previous year. Operating profit also surged 133% year-on-year to 344.2 billion won, marking the highest performance in the company's history. At that time, overseas sales amounted to 1.3359 trillion won, up 65.1% from the previous year, accounting for 77% of total sales. In particular, growth in the U.S. and Chinese subsidiaries increased by 127% and 70%, respectively, compared to the previous year. Additionally, overseas sales in the first quarter of this year reached 424 billion won, with overseas sales accounting for 80% of total sales.
◇Introduction of unmanned automation systems from noodle-making to packaging… Use of eco-friendly energy such as solar power
The Samyang Foods Miryang second factory is a smart factory that operates the entire process from flour noodle-making to packaging using automated robots and systems. A notable feature is the optimized logistics connection process between the Miryang first and second factories through an automated warehouse and autonomous mobile robots (AMR).
Examining the process by which buldak stir-fried noodles are produced, the process is carried out through step-by-step automated equipment. Once the dough consisting of flour and blending water (purified water + salt + vitamins, etc.) is formed into noodle sheets through seven rollers, it is steamed in a steaming tunnel at approximately 100℃ for 3 minutes and 30 seconds. In the shaping process, the noodles are cut into square shapes through automated devices and are subjected to deep-frying in approximately 180℃ palm oil for about 90 seconds while contained in molds, and afterward, they are transferred to a three-stage cooling facility. Then, when liquid, powder, and vegetable soup are placed on a poly packaging film with the noodles, they are sealed.
The packaged products are transferred to an automated warehouse via robots. According to Samyang Foods, the automated warehouse holds about 3.5 days' worth of stock, operated entirely automatically without human involvement from reception to shipment. Additionally, a building management system that automatically manages energy sources such as electricity, steam, and gas, along with real-time management and oversight capabilities for quality, facility automation, and performance management, has also been implemented.
Moreover, 2,105 solar panels have been installed on the factory's outer walls and rooftop to utilize eco-friendly energy. This reduces CO2 emissions by 622 tons annually. Vice Chairman Kim noted, “We have reduced the CO2 emissions resulting from producing one pack of buldak stir-fried noodles to about 0.3 kg,” and added, “We will practice reducing carbon emissions to achieve carbon neutrality for a healthier planet.”
◇Samyang Foods aims to catch up with Coca-Cola… Struggling to address issues like counterfeit products in China and tariffs in the U.S.
However, Samyang Foods' initiative is not free from criticism regarding its high dependence on the buldak stir-fried noodle series. Although new products like Tanggeul and Maep-tang have been launched, the newly completed Miryang second factory was also built to produce buldak stir-fried noodle series for export to foreign markets.
In this connection, Kim Dong-chan, CEO of Samyang Foods, said, “While the buldak stir-fried noodles are gaining immense popularity worldwide, I do not think we have reached our peak,” adding, “Many people point to Coca-Cola as a globally famous brand. Our goal is to catch up with Coca-Cola.” He further noted, “We plan to continuously discover new products, including Tanggeul and Maep-tang.”
Samyang Foods' Miryang second factory plans to focus on producing buldak stir-fried noodle series for export to the U.S., Europe, and Asia. Oh Seung-yong, head of the Miryang factory at Samyang Foods, explained, “This year, the Miryang first factory will target China, while the Miryang second factory will produce products for export to the U.S., Europe, and other Asian countries,” adding, “As the carbonara buldak stir-fried noodle accounts for most of our exports to the U.S. and European markets, we will produce a lot of carbonara buldak stir-fried noodles here.”
In particular, Samyang Foods is committed to addressing the 'buldak stir-fried noodle counterfeit issue' occurring in China, its largest export market. CEO Kim stated, “We are responding to intellectual property rights (IP) and trademark issues by our respective subsidiaries in each country, and the Chinese subsidiary has also formed a task force for counterfeiting regulation, collaborating with Chinese public security to continue monitoring and regulating counterfeit activities.”
Currently, Samyang Foods is preparing measures regarding the reciprocal tariffs imposed by U.S. President Donald Trump. Since Samyang Foods does not have production facilities in the U.S., it inevitably faces impacts from the Trump administration's reciprocal tariffs. Earlier in April, CEO Kim stated that there would be no price increases in response to the Trump administration's plan to impose a 25% reciprocal tariff on Korean products.
Kim noted, “The existing noodle tariff was 0%, but now it’s understood to be subject to a 10% tariff. However, the future is uncertain,” adding, “We have formed a task force to pre-calculate cost structures by overseas regions and prepare response measures. However, we have not yet defined a specific direction.”