"A Spectacular Comeback"—CJ CheilJedang’s Kang Shin-ho Expands K-Food Influence Overseas

[Korea Financial Times, Son Wontae] Kang Shin-ho, CEO of CJ CheilJedang, has significantly improved profitability within a year of taking office, leveraging the company’s core food business. Key products such as Hetbahn, Bibigo Kimchi, and dumplings are seeing explosive demand overseas, nearly surpassing domestic sales. Riding this momentum, Kang is establishing large-scale K-Food production plants in the U.S. and Europe while expanding sales networks in Australia to further strengthen the company’s presence in Western markets.

According to CJ CheilJedang on the 20th, the company’s total revenue in 2024 (excluding CJ Logistics) remained stable at KRW 17.871 trillion, similar to the previous year. However, profitability showed significant improvement, with operating profit rising by 26.0% to KRW 1.0323 trillion. This growth was driven by the resumption of direct transactions with Coupang, boosting domestic online sales, alongside a surge in the popularity of K-Food in Western markets, particularly in the U.S.

CJ CheilJedang’s food business revenue in 2024 was recorded at KRW 11.353 trillion, nearly matching the previous year’s KRW 11.2644 trillion. Domestic sales fell 1.8% to KRW 5.7716 trillion, but overseas sales grew 3.6% to KRW 5.5814 trillion. The rising global demand for Hetbahn and Bibigo products is now reflected in the company’s financial performance. Consequently, the proportion of overseas sales increased from 47.8% in 2023 to 49.2% in 2024, almost equaling domestic revenue.

Hetbahn and Bibigo: The Pillars of K-Food Expansion

CJ CheilJedang’s K-Food boom is led by Hetbahn and Bibigo. The growing trend of "healthy pleasure" dining has expanded Hetbahn’s product range beyond instant rice to include konjac rice and pot-cooked rice. Konjac rice, made with low-calorie Cheonji-hyangmi rice, offers a chewy texture due to its konjac content. Pot-cooked rice replicates the texture of traditional rice using vacuum pressure technology, incorporating rich ingredients and nutrients. With accumulated sales surpassing 18 million units for konjac rice and 30 million units for pot-cooked rice, these products have become staple sellers, pushing Hetbahn’s annual revenue close to KRW 1 trillion.

CJ CheilJedang is also expanding Hetbahn’s presence in North America, where K-Food restaurants are increasing. In 2023, North American exports of Hetbahn white rice reached KRW 160 billion, more than double the 2021 figure. The company currently exports both white rice and multigrain rice to North America, emphasizing the convenience of instant rice for consumers without rice cookers.

Bibigo’s global success is driven by dumplings and kimchi. To reinforce the brand’s international appeal, CJ CheilJedang introduced a new Brand Identity (BI), moving away from the traditional stone pot imagery of bibimbap to a dining table concept, symbolizing a broader expansion beyond Korea. The brand name is now displayed in both English and Korean to highlight its origins. Additionally, CJ CheilJedang has identified six signature K-Food products for global expansion: tteokbokki (spicy rice cakes), hot dogs, kimbap, seaweed rolls, fish-shaped pastries (bungeoppang), and sweet pancakes (hotteok).

Expanding Sales Networks in North America, Europe, and Australia

CJ CheilJedang is actively expanding its distribution networks across Western markets, particularly in North America, Europe, and Australia. In North America, the company has leveraged its subsidiary Schwan’s to increase market share in dumplings and pizza. Bibigo’s market share in the U.S. dumpling sector rose from 37.5% in 2023 to 41.0% in 2024, securing the top position. Schwan’s frozen pizza brand, Red Baron, also increased its market share from 20.0% to 20.8%, maintaining its leading status. Additionally, CJ CheilJedang recently acquired a local kimchi manufacturer in the U.S. to begin in-house production, aiming to replicate the success seen with dumplings and pizza. The company’s North American revenue in 2024 surged 7.6% from KRW 4.3807 trillion to KRW 4.7138 trillion.

CJ CheilJedang is also targeting emerging markets like Europe and Australia. In Germany, the company officially launched the "Bibigo Store" on Amazon, selling 19 products, including seaweed snacks, K-Sauces, dumplings, and chicken dishes. It has also expanded distribution channels in Western Europe, supplying Bibigo products to major supermarket chains such as Edeka, Globus, Tegut, and REWE. Bibigo’s market share in Germany’s dumpling sector rose sharply from 18% in 2021 to 48% in 2024.

In Australia, Bibigo frozen kimbap was officially launched in Woolworths, one of the country’s largest supermarket chains. The company introduced two varieties—tuna mayo and bulgogi—tailored to local dietary preferences by using plant-based ingredients. Bibigo dumplings, including pork king dumplings and vegetable king dumplings, are also available. Currently, Bibigo products are stocked in over 1,000 Woolworths stores across Australia. Recently, the company began local production of Bibigo kimchi in Australia.

CJ CheilJedang operates 34 food business subsidiaries in 17 countries, with 33 production facilities worldwide. Bibigo is now available in over 70 countries, continuing to strengthen its influence in Western markets. The company is also introducing more Halal-certified products to expand its global reach.

Kang Shin-ho’s Leadership Accelerates Global Expansion

In particular, under Kang Shin-ho’s leadership, CJ CheilJedang’s international business is thriving. Born in 1961, Kang graduated from Korea University with a degree in business administration and joined CJ Group in 1988. Over the years, he has held key positions, including Head of HR at CJ Group, CEO of CJ Freshway, CEO of CJ CheilJedang’s food business, and CEO of CJ Logistics. After being promoted to Vice Chairman in March 2024, he made a grand return as CEO of CJ CheilJedang, significantly boosting profitability in his first year.

CJ CheilJedang recently announced plans to expand its production facilities in Hungary and the U.S. to sustain its global growth. In Hungary, the company is investing KRW 100 billion to build a 115,000-square-meter factory in Dunavarsány, near Budapest, set to be completed by late 2026. This facility will focus on expanding Bibigo dumplings across Europe. In the U.S., Schwan’s is constructing a massive 575,000-square-meter plant in Sioux Falls, South Dakota. With an initial investment of KRW 700 billion, this will be the largest food manufacturing facility in North America upon completion in 2027. The plant will primarily produce Bibigo dumplings and egg rolls.

A CJ CheilJedang representative stated, "With the new factories in the U.S. and Hungary, we plan to accelerate global expansion for our megahit domestic products. We will continue to push forward with our ‘Only One’ philosophy, securing innovative growth engines for the future of global K-Food."

Son Wontae (tellme@fntimes.com)