Business as Difficult as Selling Gold Rings, Expected Annual Sales of 4 Billion Won After Joining Coupang [Interview]

[Financial News] "Thanks to the K-food craze, there is also a demand for Korean traditional sauces abroad. We expect to be able to sell products in the United States within this year."
Kim Min-hyeok, CEO of Gil Jeontong Food, who is continuing the family business of traditional sauces in Habuk-myeon, Yangsan-si, Gyeongnam, spoke about future business plans.
CEO Kim, who started helping his parents' business since college, is still a young CEO in his 30s even after more than 10 years. He officially took over the business after his father suffered a stroke in 2019. Kim recalled, "It was a time when the business was growing as we expanded the factory that year. It was difficult to endure as interest pressure increased and sales decreased."
The lifeline CEO Kim grabbed in difficult times was Coupang. He judged that offline markets were not competitive after COVID-19, as he had no stores directly operated and supplied mainly to traditional markets. He said, "Looking back, 2023, when I started the business through Rocket Growth (Seller Rocket) on Coupang, was a turning point in my life," adding, "I started with the thought that it was really the last, and uploaded all products that could be distributed at room temperature." When Kim's desperation combined with Coupang's infrastructure, synergy soon emerged. Sales, which initially sold only 10 to 20 units a day, have now grown to an annual sales of 1.7 billion won.
Gil Jeontong Food's sales doubled from 260 million won in 2021 to 520 million won in 2022. After that, it recorded sales of 700 million won in 2023 and 1.6 to 1.7 billion won in 2024. In the first half of this year, it achieved sales of 1.6 billion won, already approaching last year's annual sales. The goal for this year is 4 billion won. CEO Kim predicted that achieving the goal would be easy, saying, "Since Cheonggukjang, a seasonal product, comes out in the fall, sales usually increase in the second half."
Thanks to Coupang's convenient seller process, he does not operate a separate self-mall. CEO Kim explained, "With Rocket Growth, we can solve everything from delivery, storage, to customer service (CS), so it's convenient and saves delivery costs," adding, "It also saves labor costs as well as delivery costs."
There are also plans to expand the product line based on the solidified business foundation. CEO Kim added, "We are currently making products mainly such as doenjang, ganjang, cheonggukjang, and cheonggukjang powder, but we are considering expanding to gochujang and ssamjang," adding, "This is because customers are looking for gochujang first rather than profitability."
Overseas expansion has also come into view. Currently, it is supplying to Mega Mart, a distributor in the Yangsan area, and inquiries about products have also come in from Mega Mart in the United States. CEO Kim said, "We are currently undergoing FDA certification procedures," adding, "It is expected that Gil Doenjang will be available for sale in California, USA within this year."
wonder@fnnews.com Jeong Sang-hee Reporter