KGC’s overseas revenue to decline for first time this year

JungKwanJang CI

Korea Ginseng Corp. (KGC), South Korean seller of JungKwanJang, a red ginseng-based health functional food, is expected to post its first-ever on-year decline in overseas sales this year.

According to industry sources on Sunday, KGC’s overseas subsidiary revenue rose from 146.4 billion won ($99.26 million) in 2020 to 214.3 billion won in 2022 and 314.1 billion won in 2024.

This year, however, overseas revenue is expected to record its first decline, coming in at around 300 billion won, despite improved profitability.

The company noted that its focus on strengthening operational efficiency and profitability abroad has affected top-line growth.

The proliferation of low-priced supplements has reportedly hurt JungKwanJang, whose products are priced as high as 400,000 to 600,000 won.

The sluggish overseas performance is also expected to weigh on KGC’s overall revenue.

The company’s total sales peaked at 1.47 trillion won in 2019 but slipped to 1.3 trillion won last year.

KGC plans to target overseas markets more efficiently by launching a wider range of products and formulations tailored to local demand.

It also plans to expand its business portfolio into the business-to-business (B2B) raw materials market.

A notable move is the recent launch of G1899, a raw-material brand that standardizes natural ingredients such as red ginseng.