Charmfre Co., Ltd. is actively shaping the future of South Korea’s poultry industry, not only through its fully integrated value chain—from breeding to distribution—but also by pioneering the nation’s most advanced animal welfare standards. As Korea’s food exports continue their remarkable nine-year growth streak, reaching USD 13 billion in 2024, CEO Jaeyoon Kim sees continued global expansion as a necessity for survival.
JAEYOON KIM | CEO OF CHARMFRE CO., LTD.
Diversifying K-Food Beyond Kimchi and Ramyeon
CEO Kim argues that Korea’s domestic industries, including food, have limited room for growth without prioritizing export. While K-culture has already made staples like ginseng, ramyeon, and kimchi globally popular, a significant challenge remains in diversifying the product range. To elevate sectors like chicken into major global exports, Charmfre believes the strategy lies in showcasing variety.
Unlike global markets dominated by a few large franchises (like KFC), Korea boasts a wide array of domestic chicken brands with unique flavors. Promoting these distinct offerings, such as dakgangjeong (sweet and crispy Korean-style fried chicken), can introduce a much broader variety of chicken products. The difference in consumption—chicken is a snack or special treat in Korea versus a staple protein in many Western countries—presents a clear market opportunity for Korean producers.
Leveraging Specific Korean Advantages for Western Markets
Charmfre is just beginning its journey to diversify exports beyond Asia, where nine out of the top ten Korean food export destinations are currently located. The global popularity of K-culture is seen as a crucial gateway. Chicken, in particular, offers unique advantages. While Western markets favor large birds and specific cuts like chicken breast for health reasons, the average size of Korean chicken breasts is naturally better suited for portion-controlled meals and specialized processed dishes. This suitability offers a clear market entry point into regions like the U.S. and Europe.
Charmfre is proactive in mitigating export challenges, having already secured processing system certifications that comply with both EU and U.S. standards. This preparedness has allowed them to export products like samgyetang (traditional Korean ginseng chicken soup) to these major markets, building on initial success achieved through partnerships with distributors like CJ and Pulmuone.
Growth as a Necessity: Population Decline and Cost Structure
The move to expand internationally is driven by two critical realities. First is Korea’s declining population, which necessitates seeking larger, more scalable markets to ensure sustainable growth. Second is the high cost structure, where imported feed accounts for approximately 60% of the raw cost of producing chicken in Korea, making global competition essential for profitability.
Charmfre addresses the labor shortage, exacerbated by Korea’s aging population, through both government foreign labor programs and extensive automation. Their farming and breeding operations utilize advanced systems, allowing each facility to be managed by just one or two people.
Animal Welfare: A Commitment to Quality and Ethics
As the first company in Korea to earn a full animal welfare certification (for farm, factory, and transportation), Charmfre views the practice not merely as an ethical commitment but as a driver of product quality. Lower-stress environments directly result in better-tasting and better-textured meat.
To achieve this, the company adopted EU systems, imported European equipment, and voluntarily maintains expensive standards, such as providing premium feed and lowering stocking densities. CEO Kim believes communication is key to bridging the domestic cultural gap where awareness of livestock welfare is low. He advocates for establishing a clear scientific link showing that reduced stress equals higher meat quality to accelerate public acceptance and calls for stronger government regulation, benchmarked against countries like France, to accelerate industry-wide adoption.
Vertical Integration and Distribution Strategy
Established in 2010, Charmfre was designed with a forward-looking mindset, collaborating with the government to help shape the early legal framework for animal welfare in Korea. Their operational excellence is defined by a rigorous cold chain system. They utilize an RTV (Robotic Transfer Vehicle) system that transports goods exclusively indoors on an automated rail system. This transformation prevents fresh products from being exposed to ambient temperatures during logistics, maintaining freshness and safety until the moment of shipment.
The facility’s flexibility allows it to process four different poultry breeds, including duck, enabling a diverse product range. While samgyetang remains the flagship cultural offering—being marketed initially to the Korean diaspora in the U.S. for its health benefits—the company has high hopes for snack-style products.
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Samgyetang is Charmfre’s flagship product for introducing Korean food culture abroad.
Translating the Chimaek Culture
Charmfre is exporting under its own brand while also supporting other renowned brands through OEM and ODM partnerships (like those with CJ Bibigo and Pulmuone). Their strategy is to shift consumption habits both at home and abroad by positioning chicken as a convenient, healthy, everyday meal rather than a seasonal treat or a snack.
The potential for snack products, however, is immense. Since chicken is frequently consumed as a snack alongside beer in Korea—the “chimaek” culture—Charmfre offers familiar formats like boneless chicken, wings, and dakgangjeong. They believe explaining this culture simply as a “chicken and beer experience” or “chicken night out,” akin to popular American buffalo wing consumption during sports games, will resonate internationally.
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The “chimaek” culture of enjoying chicken and beer is a key concept for Charmfre’s international snack product marketing.
Looking ahead, Charmfre’s roadmap for the next five years is solely focused on growth through strengthening export infrastructure, diversifying the product portfolio, and investing in branding. Their goal is to transition from being just a supplier to a globally recognized leader in premium Korean poultry products. CEO Kim summarized the company’s core identity simply: “Real Fresh.”
Frequently Asked Questions
Why is Charmfre expanding internationally?
Charmfre’s international expansion is driven by the necessity for sustainable growth due to Korea’s declining population and shrinking domestic market. Exporting to larger, scalable markets is crucial for maintaining competitiveness and profitability.
What sets Charmfre apart in the Korean poultry industry?
Charmfre is distinguished by its fully vertical integration (from farm to table) and its leadership in animal welfare. It was the first company in Korea to receive full animal welfare certification for its farm, factory, and transportation system.
How does Charmfre ensure product freshness during logistics?
The company utilizes an advanced Robotic Transfer Vehicle (RTV) system. This automated rail system transports all finished products exclusively indoors, maintaining a strict internal cold chain and preventing product exposure to ambient temperatures before shipment.
What is Charmfre’s strategy for marketing chicken snacks abroad?
Charmfre leverages the Korean “chimaek” (chicken and beer) social culture. They market snack products like dakgangjeong (sweet and crispy chicken) as premium, convenient options, translating the “chicken and beer experience” for American and European consumers.
How does the company view government regulation of animal welfare?
CEO Jaeyoon Kim believes that stronger government regulation, similar to standards in the EU, would accelerate adoption across the entire industry, ultimately benefiting producers, consumers, and the animals by raising quality standards.
