Otoki, the major South Korean food manufacturer formerly known as Ottogi, announced a significant investment of 56.5 billion won (approximately $40 million) into its U.S. subsidiary, Otoki America Holdings. The company revealed in a regulatory filing that it plans to purchase 400,000 new shares of its wholly owned U.S. subsidiary on June 27, 2025. This move is part of Otoki’s broader strategy to solidify its presence in the American market, particularly as global demand for Korean food products, such as its flagship Jin Ramen, continues to rise.
The investment will be executed through a combination of a loan-to-equity conversion and a cash capital increase, ultimately raising Otoki America Holdings’ total shares to 700,000, all of which remain fully owned by Otoki. This capital injection follows a challenging year for Otoki America, which saw an 18% decrease in sales in 2024, highlighting the need for renewed focus and resources in the competitive U.S. market. Otoki has also rebranded from “Ottogi” to “Otoki” to improve global recognition and accessibility, and has enlisted popular figures such as BTS’s Jin to promote its products internationally.
Looking ahead, Otoki has set ambitious goals, aiming to nearly triple its overseas sales to 1.1 trillion won by 2030, up from 361.4 billion won in 2024. To achieve this, the company plans to complete a global logistics center in South Korea by April 2026 and build a ramyeon plant in the United States by 2027. These initiatives underscore Otoki’s commitment to expanding its footprint in the world’s largest food market and enhancing its global supply chain capabilities.
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(Source: Azer News | Biz Chosun | Korea Herald)
