Recently, I came across a fascinating event: a popular TikToker was rushed to the emergency room. He was found to have blood in his urine, suspected to be from kidney stones.

The culprit? His daily consumption of Buldak spicy noodles. He's been eating them non-stop for six months. Those fiery noodles?

Yes, surprisingly, despite not being Korean, he's actually American. I'm from the United States. Indeed, it's an American's intense craving for Buldak spicy noodles that's noteworthy.

His video savoring Buldak-flavored chicken went viral with almost 20 million views, sparking widespread discussion. Such content continues to captivate international audiences.

On TikTok, even the renowned American rapper Cardi B shared her experience tasting spicy chicken. After seeing numerous TikTok clips, I decided to try it myself.

This sounds familiar. Her video, too, amassed nearly 20 million views. In the U.S., these spicy chicken variations are a big hit.

The milder spice level makes them more accessible to the local palate. Their popularity has soared to the point of creating shortages.

Cardi B even made a trip herself to find them. A young girl in the U.S. was so overjoyed receiving spicy chicken as a gift, she burst into tears.

That heartfelt video went viral, leading Samyang to gift her a year's supply of ramen. Its popularity in the U.S. is undeniable.

Broadly speaking, the craze for Buldak spicy noodles seems to be shifting from Asia to the U.S., and it's not just a fad.

Indeed, the popularity of these spicy noodles is backed by remarkable sales figures. Samyang's international sales have skyrocketed.

There's been a 34% increase in just the past year. A whopping 80% of those international sales are attributed to Buldak noodles, propelling our global market presence.

Consequently, Samyang now boasts higher overseas sales than domestic. International revenue surpassed domestic four years ago and continues to grow.

Last year, international sales accounted for nearly 70% of our total revenue. Samyang has transcended its domestic bounds.

It's more accurate to call it an export-driven company. Boosted by global sales, we celebrated a milestone of $1 trillion in annual revenue for the first time in our history.

Our revenue surged by over 30%, and operating profit soared by more than 60%. What's the current buzz? Typically, Nongshim, Ottogi, and Samyang are recognized as the industry's big three, but Samyang is currently leading the charge.

Indeed, both Nongshim and Ottogi are roughly three times larger than Samyang in terms of revenue. Last year, Samyang hit the 1 trillion mark in annual sales, whereas Nongshim and Ottogi had already surpassed 3 trillion.

Nongshim, notably, has a variety of popular snack products besides its ramen range. Items like shrimp crackers, Banana Kick, and international brands like Pringles and Kellogg's feature prominently in Nongshim's portfolio.

This is particularly true for their flagship ramen products, many of which are blockbuster hits and dominate their domestic markets. Hence, they hold a strong position.

Conversely, Ottogi offers a different take, with a lighter style compared to the ramen here. Ramen only represents 20% of Ottogi's sales.

For context, ramen accounts for 80% of Nongshim's and 90% of Samyang's sales.

Thus, Ottogi is less dependent on ramen for its revenue. Ottogi boasts an extensive product lineup outside of ramen, producing nearly every conceivable type of processed food.

This diversity generates multiple revenue streams and adds considerable complexity to their operations. However, it's fair to say that Samyang heavily relies on its flagship Buldak fried noodles.

With 70% of our revenue stemming from this fiery favorite, we have room to expand. Currently, Samyang has the most potential for growth, despite its smaller size.

In fact, last year, Samyang's revenue growth exceeded 30%. In contrast, Nongshim and Ottogi saw growth under 10%.

And Samyang's upward trajectory is only becoming more pronounced. Particularly in this year's first quarter, our largest markets, China and the U.S., saw a remarkable 200% growth.

Impressive, isn't it? But how did Nongshim and Ottogi fare in the same period? They experienced somewhat of a growth plateau.

It's quite a distinct atmosphere. Samyang boasts a burgeoning family enterprise, achieving an impressive operating margin exceeding 12% last year.

In contrast, Nongshim and Ottogi reported margins of 6% and 7%, respectively. Samyang is outperforming its rivals in terms of profitability.

Clearly, Samyang is garnering high valuation in the market due to its anticipated growth and future earning potential. The company's share price has surged recently.

Climbing from 100,000 won to a peak of 500,000 won. This catapulted Samyang to the apex of the industry by market cap.

Although Nongshim poses stiff competition, Samyang was originally the industry frontrunner, wasn't it? However, we ceded the top market share to Nongshim, which entered later, and faced a downturn in '89 during the bubble burst.

But now, after decades, Samyang has reclaimed the spotlight, becoming the focal point once again. It proves the adage true: there are no permanent victors or vanquished in business.

Turning to competitors, Nongshim's share price isn't performing poorly either. It's been trending upwards lately, and Nongshim enjoys robust international sales, correct?

Admittedly, growth hasn't been linear, exhibiting volatility, yet it remains consistent overall. Also, Samyang's exports outperform its domestic sales.

It's not overwhelming, but approximately 37% of our revenue is derived from international markets. In reality, the domestic sales volume is so substantial that it overshadows the export figure. Indeed, Nongshim outperforms Samyang in international turnover.

Last year, Samyang achieved 800 billion in sales, whereas Nongshim exceeded 1.2 trillion, particularly abroad where Shin Ramyun is the flagship product, selling more internationally than domestically.

Conversely, Ottogi's narrative is somewhat different: its share price has been in decline for eight years. The crux of the issue is Ottogi's limited international reach, with a reliance on the domestic market.

However, the home market offers little room for growth. This limitation impacts the valuation of the stock. In fact, last year, only 13% of Ottogi's noodle sales came from exports.

Among the major players, they export the least amount of noodles. Nevertheless, Ottogi isn't solely reliant on noodles, so limited noodle exports aren't critical, but the company lacks significant international sales beyond noodles.

In terms of last year's total revenue, international sales were just 68%, right? That's considerably lower than our competitors.

Indeed, the challenge for Ottogi is that it's tough to expand exports when the domestic food market is so dominant. Consumers prefer local products over imports, highlighting a strategic limitation for Ottogi, but the company is not merely treading water.

While we're focused on expanding our international sales and growing our global business, let's circle back to how Buldak became such a hit abroad.

It's become quite a legendary tale now, but it was actually YouTube that catapulted it to global fame. Remember in 2014 when a video of a British individual trying Buldak fried noodles went viral on YouTube?

That's when Buldak noodles really took off. Another key factor is the international boom of Korean mukbang videos, with the term 'mukbang' now globally recognized.

That's Korean influence for you. Now, there are channels dedicated to mukbang with upwards of 10 million subscribers.

This surge in popularity is driven by a significant international viewership, indicating a widespread fascination with mukbang. A central theme among these is the fiery fried chicken challenge.

The no-leftovers, rapid consumption approach took the internet by storm around 2016 with the Buldak Challenge. You'll find a plethora of challenge videos from that period.

This craze coincides precisely with the skyrocketing Buldak sales, doesn't it? Incorporating Hallyu celebrities further fueled the trend, as seen when BTS's Jimin's Buldak eating clip went viral, earning gratitude from Samyang's vice chairman, Kim Jung-soo.

Indeed, the challenge videos held tremendous appeal, featuring reactions to the spiciness, shared experiences of the heat, and the sheer entertainment value they provided.

Yet, the lifespan of such challenges is typically limited. To be honest, I anticipated Buldak to be a passing trend, akin to Kokko noodles or Jawang.

I assumed it was a spicy novelty for Koreans, and foreigners would try it just for fun. But it was during the COVID-19 pandemic that Buldak's longevity got an unexpected boost.

Quarantine measures led to increased consumption of convenient foods like instant noodles. In regions unfamiliar with ramen, many tried it for the first time.

Post-pandemic, we encountered another fortuity: the surge in global food prices. Elevated costs heightened the demand for affordable options like ramen.

Spicy varieties, such as Buldak and Shin Ramyun, experienced exceptional growth. This trend aligns with the global shift towards spicier flavors, as evidenced by rising demand for capsaicin and chili peppers.

This taste for heat could well be contributing to the popularity of Buldak and Shin Ramyun. The Buldak brand has since expanded its product line, right?

Some variants are milder than the original. The strategy is to slightly lower the spice barrier to broaden appeal and boost sales, and it's working—Carbo Buldak, for instance, is performing well in the U.S.

Another important development is the proliferation of recipe content, which has played a role in the brand's sustained success. The rise in creative culinary content has also been a significant factor.

I've noticed many have concocted and shared their own recipes to temper the heat of fried chicken by incorporating ingredients like milk or eggs.

Some analysts believe the rise in sales is due to the proliferation of content that offers methods to mitigate the spiciness. Indeed, the product holds its own in the market, unlike many that gained fleeting fame through spice challenges and have since vanished, right?

It's a trend that inevitably dwindles with time. Yet, Buldak's fiery taste is both delectable and addictive, which explains its sustained sales growth long after the initial challenge hype.

Here are a few testimonials. For Samyang, breaking into international markets is a significant achievement, transcending mere performance improvement; it's a true breakthrough.

Domestically, under Lee Jong-won's leadership, the ramen market saw stagnant growth. There's a cap within the local market.

Indeed, the Korean consumption of ramen is exceedingly high. Per capita consumption alternates between the highest or second highest globally.

Proximity to Japan, the birthplace of instant noodles, and the swift adoption within the industry, have made ramen nearly a staple in our diet.

Creating additional demand is challenging. It's not a matter of a declining population, but rather the expansion of the middle class and a rising interest in healthy eating.

Consequently, the perception of ramen has taken a negative turn. However, beyond our borders, particularly in Asia, there's a vast untapped market where ramen consumption is still novel.

There's ample scope for growth. Globally, the instant noodle market is expanding at a rapid pace. The domestic landscape is fiercely competitive, with a constant influx of new products, most of which eventually fail.

People tend to stick with the familiar names. Classics like Shin Ramyun, Jjapagetti, and Yukgaejang remain dominant.

I often alternate among favorites like Jin Ramyun, Samyang Ramyun, Wang Tteok, and Paldo Bibimmyeon.

Striking gold with new varieties is rare. Even domestically, pricing is regulated. In Korea, ramen is an essential aspect of daily life.

Price hikes are difficult as they directly impact the cost of living. Subject to public scrutiny and opinion, increases rarely surpass inflation rates.

This limits the potential for added value. But in foreign markets, there's a new appetite for ramen as a staple food.

Price control is unnecessary in this context. Many countries are not well-acquainted with ramen, leaving its value perception open.

This allows for a higher pricing strategy. In fact, it is sold at premium prices. Consequently, international sales correlate with increased profits.

This is particularly true given the current favorable exchange rates. Earning in foreign currency means a higher return when converted. Selling at high prices combined with beneficial exchange rates doubles the financial gain.

Samyang's impressive revenue-to-sales ratio is attributed to its export of high-value products. Conversely, Ottogi, with a smaller export ratio, faces challenges due to costly raw material imports amidst high exchange rates.

Nonetheless, Samyang is capitalizing on this opportunity, vigorously promoting exports. Efforts are underway to boost export volumes.

The export landscape is diverse; initially, Buldak's sales were concentrated in Asia, particularly China and Southeast Asia. However, recent strategic expansion has targeted the U.S., Europe, the Middle East, and Africa, scaling down the Asian focus.

Significantly, the U.S. has emerged as the second-largest market after China. This aligns with the earlier point regarding our success in the U.S. market.

By diversifying our markets, we’re achieving revenue growth. A key strategy is localization, adapting products to meet regional preferences.

This includes developing and offering products tailored to local tastes. Distribution channels are also strategically defended. Ensuring local availability, particularly in highly frequented outlets like hypermarkets and convenience stores, is crucial.

We establish local subsidiaries, employ regional staff, and open branches wherever we operate. Samyang America, for instance, has successfully penetrated Costco and Walmart in the U.S.

As a result, our revenues soared by 154% last year. This year's first quarter saw a 200% increase, and it's notable that Buldak constitutes roughly 70% of Samyang's total revenue.

Buldak's popularity is soaring, which is advantageous for the moment. The concern, however, is potential over-reliance on a single product.

Should Buldak's appeal plateau, it could stunt the company's growth. To sustain growth, diversifying the product line is essential, and efforts are being made to establish new brands and loyalty initiatives.

A distinct brand for the international market is also being created. That concludes today's video. And now, a quick snippet from Zizik.

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