Korean food industry turns to AI to cut costs, boost margins

(Nongshim)

South Korean food companies are adopting artificial intelligence (AI) at their factories at home and abroad to improve quality control, raise efficiency, and cut costs.

According to industry sources on Tuesday, Nongshim Co., the country’s leading instant noodle maker, plans to expand its AI product inspection system this year to overseas production lines in the United States, China, and other markets.

The system combines AI and computer vision software installed on factory cameras to automatically assess noodle quality, including thickness, as well as weight and packaging conditions.

Cameras installed along production lines analyze hundreds of thousands of product images using AI neural networks to precisely identity defects.

Pulmuone Corp. also plans to introduce AI-powered smart process systems this year at tofu factories in Korea, the U.S., China, and Japan.

Since 2023, Pulmuone has collected tofu production data from 12 domestic plants, two U.S. plants, and nine partner companies. The company aims to use AI trained on three years of accumulated data to improve product quality and productivity.

“AI will detect early signs of equipment abnormalities, predict quality fluctuations in real time, and recommend optimal operating conditions based on process and raw material characteristics,” said a company official.

Paris Croissant, an affiliate of bakery giant SPC Group, has used an AI dough portioning solution at its Seongnam bakery since last year. Because fermentation changes dough volume and weight, workers previously had to manually adjust equipment to maintain consistency.

After adopting AI, the company improved portioning accuracy and production efficiency. SPC Group is reviewing plans to expand the system to other plants this year.

SPC Group is also preparing to break ground this year on a smart safety factory in Eumseong, North Chungcheong Province.

The group plans to invest 300 billion won ($203 million) to build a bakery equipped with AI, automated robots, and Internet of Things sensors.

Construction is expected to begin this year, with completion targeted for 2028, the company said.

Otoki Corp. is also stepping up AI adoption.

Since November last year, the company has used AI during pilot production runs before launching new products, cutting development lead times by 38 percent.

AI automatically checks hygiene issues, product consistency, and expiration date labeling on packaging, reducing the workload for workers.

“AI is also used to monitor electricity and fuel use and minimize waste,” said an Otoki official.

Dongwon F&B Co. has used AI-based X-ray inspection at its Changwon plant in South Gyeongsang Province since last year to detect tiny fish bones in canned tuna that even experienced workers might miss.

The company said consumer complaints have fallen by more than 20 percent.

CJ CheilJedang Corp. plans to expand its AI quality inspection solution this year to additional plants, including its Busan facility, after introducing the system in 2024 at its Incheon frozen food plant and Yeongdeungpo plant. The system uses AI-powered X-ray equipment installed above conveyor belts to quickly detect and remove foreign substances.

Industry observers expect adoption of AI technologies across the food sector to continue rising as related technologies advance.