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Korean food companies nervous over concerns about ‘Chinese Han-ryong’… Seeking new breakthroughs such as India

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Conflicts arise in the relationship between China and the South Korean government, raising concerns that the Korean-Korean law may be resumed. As such, domestic food companies that have entered China are paying close attention.

As a result, companies expanding their sales channels to India appeared in India and elsewhere. In fact, Lotte Well Food and Orion, which have been active in overseas expansion, are solidifying their position in the Asian market through their Indian subsidiaries.

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On the 26th, an official from a food company said, “Recently, there is a story that China may have blocked Naver, and there is talk of a revival of Han Hallyeong.” “Some food companies are nervous.”

On this day, in the food industry, there is a story that Naver access failures are occurring in some areas of China from the middle of this month. This raised concerns that the Chinese government may have blocked Naver.

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Recently, as singer Jung Yong-hwa, who is also active as an actor, was canceled from appearing on a Chinese entertainment program, voices are growing that Han-ryeong may be revived.

Relations between South Korea and China seem to have deteriorated since President Yoon Seok-yeol made remarks criticizing the Chinese government in an interview with foreign media last month. At the time, President Yoon said, “I oppose changing the Taiwan Strait status quo by force.”

Currently, companies that have entered China include CJ CheilJedang, Pulmuone, Orion, Daesang, and Nongshim. CJ CheilJedang is operating five food production sites in China.

Excluding Korea, it accounts for 31.2% of the total of 16 production sites in operation in Asia. There are 62 production sites in total, including Korea. It accounts for 8.1% of this.

Orion is also operating six factories locally. In April, it signed a contract to export Jeju lava water to China with Qingdao Yeongpyeong Market Management Co., Ltd. and Qingdao Gukseo Sports and Culture Industry Co., Ltd. in China. It is a company that distributes and sells ‘Tsingtao Beer’ in China and is considered one of the largest beverage sales companies in Qingdao.

However, it is said that there are no noticeable signs yet. An official from another food company explained, “There have been no major changes in the Chinese business yet, and the atmosphere is going well.”

Some pointed out that the government’s stance would intensify the conflict. An official pointed out, “Looking at the market atmosphere, it is understood that Chinese consumers or the government do not have particularly ill feelings toward domestic companies.”

Recently, food companies are expanding their business not only to China but also to India and Southeast Asia. Lotte Well Food (formerly Lotte Confectionery) announced plans to invest 4.5 billion rupees (about 70 billion won) in its Indian subsidiary Harbmore in January this year and establish a 60,000 square meter ice cream production facility in Pune, Maharashtra, India. announced.

This is the first time Lotte Well Food has built a new factory since acquiring Harbmore in 2017. In the future, it plans to transfer food manufacturing technology, including various automation facilities, to the new factory.

There is a possibility of diplomatic conflict between China and the South Korean government, such as the Korean War, and there is a prospect that India will overtake China and emerge as the world’s most populous country, and some analyze that this trend will be added.

The possibility of conflict between Chinese local companies and Korea is also raised. In fact, a Chinese court recently ruled in March that Qingdao Taeyangcho Foods and Jeongdo Foods should pay compensation of 100,000 to 200,000 yuan to Korean food companies. It is an amount ranging from 18 million to 37 million won in Hanwha.

At that time, domestic companies filed seven lawsuits for copyright and trademark infringement on nine of their products. At this time, CJ CheilJedang, Samyang Foods, and Daesang each took issue with two cases and Ottogi with one case.

Source: Donga

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