Noodle Wars Heat Up: Samyang and Nongshim Battle for Flavor Supremacy

The long-standing rivalry between South Korean instant noodle giants Nongshim and Samyang Foods is heating up once again. This time, the battle centers on control of a closely guarded flavor secret: the soup base.

Samyang Foods, creator of the globally popular Buldak noodle series, has made a bold move with a stock purchase deal worth 60 billion KRW (approximately $43 million) to acquire local sauce maker GnF.

GnF has been a key supplier of powdered seasonings to major food companies, including Nongshim, Pulmuone, and Ottogi. In the previous fiscal year, the company reported revenues of 41.7 billion KRW and an operating profit of 3.2 billion KRW.

If the acquisition goes through, it will mark Samyang’s largest merger and acquisition deal, exceeding 50 billion KRW, since its establishment in 1961.

A company spokesperson stated, “The acquisition has not been finalized, including its timeline. We are still reviewing various aspects of the deal.”

However, industry analysts view this move as a strategic maneuver to secure production capacity amid soaring export demand.

Until now, Samyang Foods has primarily relied on original equipment manufacturers for its liquid and powdered soup bases. Industry insiders believe this acquisition would allow the company to fast-track cost savings by bringing key ingredient production in-house.

The deal could send shockwaves through the industry, as rival clients previously supplied by GnF may now be forced to seek alternative sources for their seasonings.

In a parallel move, Nongshim Holdings, the parent company of food and beverage giant Nongshim, announced last Friday its plans to acquire 100 percent of local sauce maker Sewoo for nearly 100 billion KRW in August.

Sewoo, known for its family ties to Nongshim Chairman Shin Dong-won, has been a crucial supplier of soup ingredients for Nongshim’s flagship product, Shin Ramyun. The company posted impressive figures last year, with revenues of 136.8 billion KRW and an operating profit of 10.6 billion KRW.

Through this acquisition, Nongshim aims to bolster its in-house capabilities in seasoning and sauce production, enhancing both product quality and manufacturing efficiency.

A Nongshim Holdings representative explained, “We decided to acquire Sewoo to reinforce synergies across our food manufacturing supply chain and boost product competitiveness.” The spokesperson added that the group plans to continue expanding its food business through strategic acquisitions.

With global demand for Korean ramyeon on the rise and increasing pressures from stricter quality standards and supply chain instability overseas, in-house soup production offers a strategic hedge for ingredient stability and cost control, according to industry experts.

An industry insider commented, “Bringing production in-house allows for more precise control and easier adaptation to overseas markets. Given ramyeon’s heavy reliance on the soup base for taste and quality, it not only helps prevent technology leaks but also secures a stable supply chain.”

Last year, Samyang Foods generated nearly 80 percent of its total revenue from overseas markets, while Nongshim earned just under 40 percent of its revenue abroad.

Soup bases, known for their complex blend of ingredients, signal a broader shift in how Korea’s food conglomerates approach sauce production. Even a minor change in formulation can dramatically alter the flavor profile.

Another industry expert noted, “Soup bases also have broad applications beyond ramyeon, including in frozen foods and the wider seasoning market.”