Customers browse ramyeon at a local discount chain in Seoul. (Yonhap)
The unexpected martial law declaration late Tuesday by President Yoon Suk Yeol, which was lifted just two and a half hours later, left South Korean export-driven businesses fearing its impact on their global expansion.
In particular, food and beauty companies, which have found renewed growth in overseas markets amid a stagnating domestic economy, voiced concerns about whether the incident might tarnish Korea’s reputation abroad and harm export performance.
"We received multiple calls from buyers and branch offices overnight, all asking if the situation was under control," said a food industry official, speaking on condition of anonymity. "There’s palpable concern about whether this will have a long-term effect on our operations. With exports playing such a critical role, any instability could threaten our hard-earned momentum."
In recent years, local food and beauty companies have increasingly relied on overseas markets for growth.
CJ CheilJedang, a dominant player in the food sector, reported overseas food sales of 5.39 trillion won ($3.81 billion) in 2023, marking a growth of over 70 percent from 3.15 trillion won in 2019. The share of overseas sales in its total food revenue rose from 39 percent to 48 percent during the same period. Orion and Nongshim also expanded their global presence, with snacks and instant noodles driving sales in North America and Asia.
The beauty industry is also riding high on the K-culture boom overseas. Contract manufacturer Cosmax’s Indonesia subsidiary recorded third-quarter sales of 32.3 billion won, up 38 percent year-on-year, while its Thailand subsidiary posted a 70 percent increase, reaching 11.1 billion won. Amorepacific, the No. 1 beauty company here, reported that over 40 percent of its total revenue came from overseas, with sales surging 108 percent in the US and 339 percent in Europe, the Middle East and Africa.
Among food exporters, the instant noodle industry has shown resilience. "Given the extensive global presence of ramyeon products, we’re somewhat protected from immediate disruptions," said an official from a local instant noodle company, speaking on condition of anonymity.
"Any decline in K-culture’s influence could directly impact interest in K-food," the official added.
In contrast, beauty companies are expressing heightened concerns about their expansion plans. Industry experts noted that many beauty firms are at critical stages of securing international investments and strengthening global partnerships.
"The potential downgrade of Korea’s creditworthiness is a significant concern," said a beauty industry official. "Overseas investors are particularly sensitive to geopolitical risks, and this incident raises additional uncertainty."
Both the food and beauty sectors were on track to achieve record-breaking export figures this year.
According to the Ministry of Agriculture, Food and Rural Affairs, South Korea’s food exports were expected to surpass $10 billion in 2023, with $9.05 billion already recorded as of November, driven by strong demand for instant noodles, snacks and beverages. The Ministry of Food and Drug Safety reported that cosmetics exports reached $9.3 billion by November, surpassing the previous annual record of $9.2 billion in 2021.
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