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Diachrony
after seven years, it could not recover its damaged brand
BiggestCrisiscrisisforKoreaneconomyand
value. To make matters worse, with the IMF crisis in 1997,
fallofthefirstK-Ramen
the original ramen company “Samyang Foods” had to
Socialism came to collapse beginning with the Dissolution
encounterseverefinancialdifficulties.
of the Soviet Union in 1991. The evolution of transportation
Even so, due to the popularization of ramen, diverse
and telecommunication largely contributed to international
product developments from different ramen companies, and
trade, and these brought about the flow of globalism. S.
successful overseas expansion, Director Lee analyzed, “In
Koreaswamwiththeglobaltide;theadministrationofKim
spite of the economic recession, the Korean ramen market
Young-sam, the 14th President of South Korea, declared
even grew.” He added, “Facing the IMF economic crisis,
globalization. S. Korea reached 10,000$ GDP per capita in
ramen settled down deep into the life of ordinary Korean
1995,andjoinedtheOrganizationforEconomicCooperation
people.”
andDevelopment(OECD)in1996.
In “Five Views on RAMYEON,” a study by Oh Se-young,
However, Professor Lee Chul-hwan explained, “The Kim
a professor from the Department of Food & Nutrition at
administrationwastooobsessedwiththe$10,000projectfor
Kyunghee University, she defined this period as “boom
external publicity. To reach the goal, it decreased exchange
for the ramen market.” She explained that because of
rates,sothevalueofwonincreased.Inturn,thisprovokeda
the recession, people came to find ramen, and this was
slumpinexport,whichledtoalackofdollars.Accordingly,
connected to prosperity of the K-Ramen industry. This
facing 1997’s Asian Financial Crisis which began in South-
can be understood that its traits such as simplicity and
East Asia, S. Korea got to undergo huge humiliation: the
inexpensiveness became a big support for the people having
bailout from the International Monetary Fund (IMF).
ahardtime.
Eventually,SouthKorearecordedtheworsteconomicgrowth
K-Ramen reached 1 trillion won (1 billion dollars) sales
eversince1980.”
in the domestic market. Overseas, “Nongshim” had already
A number of conglomerates, as well as small businesses,
built its factory in China, and “Samyang” and “Paldo” soon
wentbankrupt,andmanyworkerswerefiredduetofinancial
followed suit. “Paldo,” especially, established a business
problems.Includinganumberofsocialissuescausedbythe
placeinRussiawhenits86’s“Doshirak”becamesopopular
crisis, such as high rates of suicide and lay-offs, S. Korea
among Russians. After full-scale investment, “Paldo” takes
sufferedfromunprecedentedeconomichardship.
up 60 percent of the Russian cup noodles market share in
Itishardtocomparetotheeconomiccrisis,buttherewasa
2020withthesoleitem,“Doshirak.”
hugeimpactintheramenmarket;the“beeftallowscandal.”
The press reported that “Samyang” used beef tallow animal
OvercomingCrisis,crisis,KoreaasIT-advanced
atforindustrialusesuchasmakingcandlesortofrynoodles,
countryandpremiumizationofK-Ramen
andthisledtoseriousdamagetothewholeK-Ramenmarket.
Furthermore, “Samyang” obtained an authoritative warning
In spite of the unparalleled national hardship, S. Korea
bythegovernment,prohibitingthecompanyfromproducing
successfully overcame it. Professor Lee explained, “In
ramenforoneyear.
accordancewiththeunityofthepeoplethatexperiencedthe
Although “Samyang” was acquitted by the Supreme Court
miracleoftheHanRiver,thegovernmenteffortstoovercome
thefinancialdifficultywereaccompanied.Itfeltalimitfrom
theexistingindustry,thusitdeclaredtoleadthe‘digitization’
ⓒAFP
and‘information-orientedsociety.’Throughsupportfromthe
administration, the IT industry could secure stable demand
fortechnicaldevices.Alongsidethedynamismofthepeople,
theKoreanITindustrywasabletoexperiencerapidgrowth.”
Professor Park Myung-ho said, “An IT-advanced country
could not be achieved overnight. The government founded
Electronics and Telecommunications Research Institute
(ETRI) in the early 1980s and the private sectors also
prepared well. But, it is true that the ‘super-highway
information network’ which was established after the IMF
▲Koreanworkersarerequiringpropermeasuesfortheeconomiccrisisin
economic crisis considerably contributed to the Korean IT
1997.
16 www.theargus.org

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