South Korea’s snack exports soared to a record high in February, surpassing $40 million for the first time, as global demand surged amid the sustained popularity of Hallyu, the Korean Wave.
According to Korean alternative data platform KED Aicel, Korea’s snack exports reached a preliminary $43.25 million in February, a 32.3% increase from a year earlier. The export value is the highest for the month.
Snacks accounted for 11.7% of the country’s processed food exports, second only to instant noodles, which took up 30.5%.
The US led the consumption, importing $12.44 million worth of Korean snacks last month, a 39.9% jump from the year-earlier period.
Japan and China followed with $6.64 million and $5.44 million in imports, rising 40% and 31%, respectively, from a year earlier.
Taiwan showed an even steeper rise, with its Korean snack imports climbing 54% on-year to $2.54 million, marking the third consecutive month of 50%-plus growth.
KED Aicel is the alternative data service brand of Hankyung Aicel, renamed from Aicel Technologies Inc. after The Korea Economic Daily acquired the data firm from US-based policy and global intelligence provider FiscalNote Holdings Inc. for $8.50 million last October.
K-POP SINGERS AS MARKETING INFLUENCERS
The rising popularity of K-snacks is being attributed to the marketing influence of Hallyu celebrities and YouTubers showcasing Korean products.
A December video featuring Korean girl band Blackpink’s Rose on a British YouTube channel introduced iconic Korean snacks such as Nongshim Co.’s shrimp crackers and Choco Pie cakes made by Orion Co. and Lotte Wellfood Co. The video has since garnered over 4.4 million views.
Korea’s Ministry of Agriculture, Food and Rural Affairs recently unveiled a strategy to expand social media-driven marketing and indirect advertising via over-the-top (OTT) streaming platforms, as it seeks to capitalize on the growing global appeal of Korean culture.
KED Aicel data showed that exports of K-pop albums and DVDs, biopharmaceuticals, large transformers, instant noodles and cosmetics also posted strong growth in February.
Analysts expect leading exporters in those segments, including Samsung Biologics Co., Celltrion Inc., HD Hyundai Electric Co. and Samyang Foods Co. to post robust first-quarter earnings, buoyed by rising global demand.
Exports of biopharmaceutical goods reached a preliminary $627 million in February, up 43.4% from a year earlier.
Exports of large transformers, a critical component in the global power infrastructure, rose 38.9% on-year to $121 million, fueled by rising demand from artificial intelligence-driven data centers and the electric vehicle industry.
The US, the largest market for Korean transformers, imported $49.5 million worth in February, a staggering 267.7% increase from a year earlier.
Snack exports, led by Orion and Lotte Wellfood, posted $43 million in exports in February, continuing their upward trajectory since last year after stagnating from 2021 to 2023.
Overseas demand for Samyang Foods’ flagship Buldak Bokkeum Myeon, or spicy chicken-flavored ramen, surged, leading a 30.3% on-year rise in Korean instant noodle exports last month.
SUSTAINED GROWTH LIKELY INTO THIS YEAR
Analysts expect sustained gains for these exporters this year.
DB Financial Investment Co. recently forecast Samsung Biologics sales to rise 24% to 5.65 trillion won in 2025 from last year.
Samsung Biologics’ stock has soared 38% to 1.1 million won per share over the past year.
HD Hyundai Electric, a key transformer exporter, saw its power equipment order backlog grow 30% on-year to $5.54 billion at the end of 2024.
The company’s share price has risen 162% over the past year to 128,700 won.
Orion, Korea’s leading confectionery firm, posted a record operating profit of 500 billion won in 2024, with overseas revenue accounting for 64% of its sales.
K-pop album and DVD exports made a remarkable recovery, increasing 46% on-year to $36 million in February — the first notable rise in five years.
K-pop album and DVD exports serve as a crucial indicator of the industry’s overall overseas performance.
According to the Korea Culture and Tourism Institute, music albums accounted for 31% of Korea’s K-pop related product exports in 2024, with streaming services and overseas concerts taking up 21% and 48%, respectively.
The recent increase in K-pop exports coincides with rising global interest in rookie Korean artists.
Boynextdoor, a boy band under Korean entertainment powerhouse HYBE Co., ranked 40th on the Billboard 200 last September.
HYBE posted record revenue of 2.25 trillion won last year. The company’s stock has climbed 34.5% over the past year to 250,000 won per share.
By Tae-Ho Lee
thlee@hankyung.com
In-Soo Nam edited this article.
