[Young journalist Hojun Lee] As the logistics environment in the Middle East rapidly worsens due to the aftermath of military clashes between the United States and Iran, warning signs have appeared for South Korea’s K-food export strategy.

In particular, as the Strait of Hormuz—often called the “artery of global logistics”—has been blocked, concerns are growing about rising oil prices and maritime shipping costs. In response, Korean food companies are preparing countermeasures such as changing transportation routes or seeking ways to reduce costs.

According to industry sources on the 5th, the international maritime transport environment has become unstable as Iran’s Islamic Revolutionary Guard Corps (IRGC) has begun controlling the Strait of Hormuz. With rising global oil prices and fluctuations in the Korean won–U.S. dollar exchange rate occurring simultaneously, there are concerns that the profitability of Korean food companies’ exports may face greater pressure.

Samyang Foods, which has gained global popularity with its Buldak Spicy Noodles, is considering a detour shipping method that passes through the nearby country of Oman instead of the existing sea transport route. A combined logistics approach that integrates sea and land transportation is also being discussed as an alternative.

Samyang Foods has previously responded to logistics disruptions in the Middle East. In 2023, when tensions in the Red Sea made passage through the Suez Canal difficult, the company continued exports by using a detour route around the Cape of Good Hope in Africa. A company official expressed concern, saying, “If Middle Eastern shipping routes are halted due to the war’s aftermath, there is a possibility that European routes could also be affected.”

Samyang Foods currently exports products to around 10 Middle Eastern countries, including the United Arab Emirates (UAE), and last year its sales in the region amounted to approximately 66 billion won.

Other food companies are also preparing countermeasures. Dongwon Group is considering reducing other costs, such as production and distribution expenses, to prepare for rising logistics costs. A company official explained, “There is a possibility that both fuel costs and domestic and international logistics costs could rise simultaneously, making cost management very important.”

Daesang is also closely monitoring the situation, believing that if instability in the Middle East continues for a prolonged period, adjustments to its global business strategy may become inevitable. The company stated, “Rising oil prices and logistics costs are somewhat expected trends,” adding that it will determine its response after observing future market conditions.

Nongshim and Ottogi, which are pushing to expand in the Middle Eastern market, are also preparing response strategies for different scenarios. Nongshim plans to expand both online and offline marketing this year to target the Middle Eastern market, and recently held a Shin Ramyun snack pop-up event in Riyadh, Saudi Arabia. However, the company explained, “We will flexibly adjust our response strategy depending on variables such as a blockade of the Strait of Hormuz or sharp increases in oil prices.”

Ottogi, which is still in the early stages of entering the Middle Eastern market, flexibly review its future export expansion strategy in line with regional conditions.

▶원문 기사: 호르무즈 막히자 K푸드도 흔들…중동 수출길 ‘빨간불’
 

◆이코노미스트가 글로벌 차세대 경제 리더, 청소년 기자단 영 저널리스트와 함께합니다. 영 저널리스트 기자단은 프리미엄 경제지 이코노미스트, 논술 전문 기관 Ni 에듀케이션과 함께 주요 시사 이슈를 팔로우업하고 직접 기획, 취재, 기사 작성 활동을 하며 사회적 문제를 고심하고 해결 방안을 제시하는 과정을 경험하게 됩니다. 이번 기사는 영 저널리스트 기자단이 이코노미스트 기사를 영문으로 번역하며 이슈를 팔로우업한 기사입니다. 차세대 글로벌 경제 리더, <영 저널리스트 with  이코노미스트> 영문 기사는 매주 연재됩니다.

ⓒ이코노미스트(https://economist.co.kr) '내일을 위한 경제뉴스 이코노미스트' 무단 전재 및 재배포 금지