Shinsegae Food pours W9.8b into US factory to expand ready-meal provision

Shinsegae Food, the food arm of retail giant Shinsegae Group, said Sunday it is injecting 9.8 billion won ($8.23 million) into its US-based food manufacturing facility as it seeks to bolster the ready-made food business in the market.

According to the company, it is plowing funds to Chang Tuh Corporation, the operator of a manufacturing plant for ready-made products in the US.

Shinsegae Food acquired Chang Tuh Corp. for 12.1 billion won last year from Emart, a hyper mart giant under Shinsegae Group. Emart purchased the US company in 2018.

Chang Tuh Corp., originally established in 1994, manufactures ready-made soup and other food items for Peacock, a private brand introduced by Emart. As of 2019, the company reportedly produced about 300 tons of products for the US market.

The move by Shinsegae Food to expand its business in the US reflects the growing popularity of ready-made meals there, the firm said.

In addition to increasing the production at Chang Tuh Corp., Shinsegae Food also aims to bolster its overseas food business, according to the company. The food company developed Olbaan meat-free dumplings in July and exported 30,000 bags to the US, Canada and Australia in July.

By Jo He-rim ([email protected])