The Competition and Growth of Korean Seasoning Company : Focused on Miwon and Mipoong

Abstract

Lim Dae-hong established Dong-A Hwaseong Industrial Co. Ltd. in Daeshin-dong, Dongnae-gu, Busan in 1956 and launched Miwon. At this time, many entrepreneurs recognizing Miwon's business feasibility began to jump into the chemical seasoning market. As a result, the early Korean chemical seasoning market became a battleground between small and medium-sized companies. CheilJedang began to enter the chemical seasoning market in earnest by merging Mipoong Industrial Co. Ltd. in 1968. At that time, CheilJedang had the technology and financial power acquired through sugar manufacturing, so it was expected that it would be able to easily dominate the Korean chemical seasoning market. However, it was impossible to break down the stronghold of Miwon, which had been established as a pronoun in the minds of Koreans. The pursuit of CheilJedang and the success of Dong-A Hwaseong lead to legal disputes, fierce promotional battles, and ultimately a struggle between employees. In 1975, CheilJedang launched Dasida, the first general seasoning in Korea. This is a new change in the Korean seasoning market and provides an opportunity to change the market. At that time, Dasida was close to an innovative new product for Koreans. In 1982, Dong-A Hwaseong launched Beef Matna and entered the general seasoning market in earnest. However, it was not enough to break down the stronghold of Dasida, a pronoun that has already established itself in consumer awareness. As a result, the pronoun of chemical seasoning Miwon and general seasoning Dasida is established in the perception of Korean consumers. This is a good example of how difficult it is to maintain a monopoly position without continuous innovation.