Nongshim is accelerating efforts to target an overseas sales share of at least 60 percent by 2030. It is stepping up management of its core North American market and speeding up a drive into new markets. It is pushing to set up a sales unit in Russia in June and has moved to respond to slowing growth in the U.S. and Canadian markets.

The industry said on April 13 that Nongshim plans to establish a new unit, Nongshim Russia (Nongshim Rus LLC), in Moscow in June. Nongshim's entry into Russia is expected to become a bridgehead for expanding into the Eurasian market, covering the broader Commonwealth of Independent States (CIS) region including Kazakhstan, Uzbekistan and Belarus. Nongshim Chairman Dong-won Shin (신동원) directly disclosed the plan to establish a local unit in Russia at a regular shareholders' meeting last month, making clear his intent to expand into new markets.

Euromonitor, a global market research firm, forecast the ramen market in Russia to expand to about $1.05 billion by 2030, with annual growth in the 10 percent range from 2021.

The Financial Supervisory Service said Nongshim's overseas subsidiaries posted sales of 1.25 trillion won last year, up 8.4 percent from the previous year. Overseas subsidiary sales accounted for 38.5 percent of total sales of 3.51 trillion won. Nongshim has overseas subsidiaries in North America including the United States and Canada, as well as in China, Vietnam, Japan, Australia and Europe.

Overseas sales are becoming more important in Nongshim's mid- to long-term growth strategy. Nongshim last year presented "Vision 2030", targeting 7.3 trillion won in sales, 700 billion won in operating profit and an overseas business share of at least 60 percent by 2030. With limited room for growth in the domestic food market, overseas performance has emerged as a key variable for mid- to long-term growth, and Nongshim is expanding overseas operations through tailored strategies by region.

Growth in North America, its largest overseas market, has slowed somewhat. Nongshim's North American sales last year fell 1.5 percent to 699.8 billion won from 710.7 billion won a year earlier. With North America taking a large share in its strategy to raise overseas exposure, Nongshim faces a need to respond to restore growth in the North American market.

This 분위기 has also appeared in recent personnel moves at Nongshim. Sang-yeol Shin (신상열), a third-generation owner and the eldest son of Nongshim Group Chairman Dong-won Shin, has served as head of Nongshim Holdings USA overseeing the North American business since August last year. Shin was promoted to vice president from executive director at the Future Business Office in regular executive appointments in January, and was appointed an inside director at a regular shareholders' meeting last month, enabling him to take part in major decision-making across management.

Performance outside North America was relatively solid. Sales at its China unit rose 4.1 percent from a year earlier to 369.6 billion won. Sales at its Japan unit increased 26.7 percent to 143.9 billion won, and sales at its Vietnam unit climbed 18.8 percent to 15.8 billion won. Its Europe unit, established in March last year, posted sales of 61.2 billion won in its first year, showing potential to settle into the new market. Growth in China, Japan and Europe helped underpin the rise in overall overseas subsidiary sales despite slower growth in North America.

Nongshim's overseas strategy is differentiated by region. In strategic hubs such as China and the U.S. and Canada, Japan, Oceania and Vietnam, it is focusing on developing new regions and fostering the Shin Ramyun brand "Shin" and premium products. In Europe, it is strengthening distribution infrastructure and expanding the market through the establishment of a sales unit. In Southeast Asia, it is seeking sales growth through promotions tailored to each country's characteristics.

Under its current business structure, ramen remains the key element for overseas growth. With a large share of ramen in total sales and exports, ramen is expected to play a central role in its overseas expansion strategy. Nongshim is therefore highlighting the development of premium products as a key overseas strategy.

It plans to target the premium ramen market in Russia as well. The company said mainstream ramen products locally are mainly mid- to low-priced items that are popular at 70 to 100 roubles, but it plans to target the premium segment at 200 roubles, more than twice the price of mid- to low-priced products.

Outside the United States and China, where it has local factories, Nongshim is placing greater weight on strengthening sales units and distribution networks, tailored marketing and brand development rather than expanding production bases. Its new unit in the Netherlands is also focusing on local entry and brand expansion rather than building a factory, and in Russia it plans to target the market by focusing on expanding listings at major local retailers.

A Nongshim official said, "In terms of the market size of overseas expansion regions, the United States and China are currently the largest." The official added, "But through the Russia unit, we plan to expand influence in the mid to long term to include the CIS region such as Central Asia. In Russia, we are already selling ramen and snack products, and we plan to increase supply focused on locally popular products."