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JOURNEY · DETAIL
Nongshim Shin Ramyun: How Shin Choon-ho Went from Splitting with Lotte to Becoming the Global King of Spicy Ramen
Founded: Shin Choon-ho · Nongshim Co., Ltd.
JOURNEY
Key Fields
FIELD STAMPSIndustryFood & Drink
RegionGlobal
ScaleGiant
ChannelOther
Origin
Shin Choon-ho was the younger brother of Lotte Group founder Shin Kyuk-ho. He initially assisted his brother in managing Lotte but split away in 1965 to start his own business, Lotte Industrial (later renamed Nongshim), due to disagreements over the ramen business. At the time, the South Korean government was promoting a 'mixed-grain' campaign to reduce rice consumption. Shin Choon-ho believed that ramen should be an affordable, filling, and flavorful staple for Koreans rather than a Japanese-style snack. He bet everything on developing a ramen tailored to local tastes, focusing heavily on his own proprietary spicy recipe.
Milestones
1965
Startup Turning Point
After breaking away from his brother Shin Kyuk-ho, Shin Choon-ho founded Lotte Industrial in 1965 to enter the food industry. Starting from scratch with factories and distribution channels, the company initially survived on OEM production and basic noodle products. This experience defined his management style: maintaining total control over recipes and production.
1970
Technical Challenges Failure
In 1970, early ramen products failed to gain traction in a market dominated by Samyang Foods due to mediocre noodle texture and broth. Shin Choon-ho personally led hundreds of seasoning tests. Despite financial strain from failed test runs, he remained committed to the spicy broth concept, convinced that differentiated flavor was the only weapon to break through the barriers set by incumbents.
1980
Category Expansion Growth
Nongshim launched long-term hits like Ansungtangmyun and Shrimp Crackers. The latter was inspired by Shin Choon-ho's desire for his daughter to have a shrimp-flavored snack, and it unexpectedly became a national staple. The company evolved from a single-product manufacturer into a multi-category food group and changed its name to Nongshim to shed its Lotte identity. This phase lasted from 1980 to 1990.
1986
Flagship Product PMF
In 1986, Nongshim officially launched Shin Ramyun. Its unique Korean-style spicy beef broth immediately ignited the market. It became a sensation upon release and has remained the top-selling single ramen brand in South Korea for over 35 years, serving as the company's cash cow through various economic cycles.
2000
Global Expansion Turning Point
Nongshim built overseas factories in Los Angeles, Shanghai, and Shenyang to achieve localized production, bypassing high tariffs and shipping costs. Shin Ramyun entered mainstream U.S. supermarkets and gained exposure at international events like the Tokyo Olympics. While overseas revenue grew steadily, the company faced pressure from low capacity utilization due to rapid expansion.
2021
Founder's Passing Turning Point
Shin Choon-ho passed away in March 2021 at the age of 91. Korean media mourned him as the 'Father of Shin Ramyun.' Management transitioned smoothly to the second generation, and the brand's global popularity continued to rise, proving that its brand equity had successfully detached from the founder's personal aura.
2026
Global Sprint Growth
In 2026, Shin Ramyun's annual global sales exceeded 2 trillion KRW, with cumulative sales surpassing the 20 trillion KRW mark. With overseas sales reaching approximately 66%, it stands as the most successful example of a single Korean food brand going global amid the K-Food boom.
Turning Points
- The split from his brother Shin Kyuk-ho and Lotte forced Shin Choon-ho to pursue a completely independent entrepreneurial path.
- The 1986 launch of Shin Ramyun with its differentiated spicy broth became an instant hit, establishing a market-leading position for decades.
- Building local factories in the U.S., China, and other regions transformed the business from simple exports to global manufacturing.
- The brand's continued growth after the founder's death in 2021 marked the successful transition from a family-run business to an institutionalized multinational corporation.
Failures & Pitfalls
- Early ramen products had mediocre taste and failed repeatedly in a market dominated by Samyang, leading to financial strain from failed production runs.
- Breaking away from the family business meant losing the financial and distribution support of Lotte Group, leaving the company resource-starved in its early days.
- Early overseas expansion suffered from low capacity utilization and losses due to an overly aggressive factory construction pace.
- The early use of the 'Lotte Industrial' name caused brand confusion, forcing a rebranding to 'Nongshim' to rebuild brand equity.
关键成功要素
- Using a differentiated spicy recipe to compete head-on with incumbents, rather than relying on low-price imitation of Japanese or Samyang products.
- The founder's extreme personal involvement in hundreds of recipe tests was the fundamental driver of the breakthrough.
- Turning a single hit product into a national icon and then expanding categories and channels around it.
- Going global through local manufacturing rather than pure exports, turning tariff and supply chain disadvantages into cost and distribution advantages.
Lessons
- New entrants must rely on hard differentiation in taste or experience; price wars only deplete resources.
- Breaking away from family capital comes at a high cost but secures independent decision-making and brand sovereignty.
- A hit product can sustain a company for decades, provided there is continuous investment in the brand and global distribution.
- The key to food globalization is shifting from exports to localized production; control over distribution channels determines profit margins.
Core Data
- Shin Ramyun cumulative sales：20 trillion KRW level (based on public data, independent verification not performed)
- Shin Ramyun 2026 annual global sales：2 trillion KRW level (based on public data, independent verification not performed)
- Overseas sales share：Approx. 66% (based on public data, independent verification not performed)
- Market position of single brand in Korea：No. 1 for over 35 consecutive years (based on public data, independent verification not performed)
- Founder's lifespan and transition year：Shin Choon-ho passed away in 2021 at age 91 (based on public data)
Competitors / Peers
In the global instant noodle market, Nongshim's main competitors include Samyang Foods (which gained massive popularity among youth via social media for its spicy Buldak noodles), Nissin Foods (the inventor of cup noodles and a global benchmark for high-end instant food), and Uni-President and Master Kong (the dominant distribution leaders in the Chinese market). Samyang has overtaken competitors in Western markets through viral single products, while Nissin holds the 'inventor' status and global cup noodle category leadership. Nongshim maintains its position as a top-tier global player through the dual-line strategy of Shin Ramyun and Ansungtangmyun, supported by its overseas local factory network.
Sources