SPC Group Opens New Bakery Plant in Malaysia, Aiming to Tap into the 2-Billion Strong Halal Market

SEOUL, South Korea, Feb. 26, 2025 /PRNewswire/ -- SPC Group, a leading South Korean food and bakery company known for its global brands such as Paris Baguette, has completed the construction of a new bakery production plant in Nusajaya Tech Park, Johor, Malaysia, as part of its strategic expansion into the USD 2.5 trillion Halal food market. At the inauguration ceremony of the Paris Baguette Johor Production Center on February 25, Hur Young-in, Chairman of SPC Group, stated, "With our Johor plant as the strategic base, SPC Group aims to bring healthy and joyful flavors for two billion Muslim consumers across Southeast Asia and the Middle East." The event was attended by YAB Dato' Onn Hafiz Bin Ghazi, Chief Minister of Johor, Yeo Seung-bae, South Korean Ambassador to Malaysia, as well as key SPC Group executives, including Chairman Hur Young-in, President Hur Jin-soo, Hana Lee, Head of AMEA (Southeast Asia, Middle East, and Africa) at Paris Baguette, and Kim Bum-soo, CEO of SPC Samlip. Expanding Reach in the Halal Market The Paris Baguette Johor Production Center will serve as a key hub for supplying Halal-certified bakery products to the global market, with a primary focus on Southeast Asia and the Middle East. Paris Baguette currently operates in six Southeast Asian countries, including Malaysia, Singapore, Indonesia, Vietnam, Cambodia, and the Philippines, and is preparing to enter Thailand, Brunei, and Laos through master franchise agreements. Expansion into Saudi Arabia and the UAE is also underway. Advanced Production Capabilities and Global Competitiveness Spanning 12,900m², the new facility houses seven production lines, capable of producing up to 300,000 bakery products daily (approximately 100 million annually). The SPC Group has invested approximately USD 56 million, doubling its initial budget, to integrate advanced automation and enhanced safety systems. This new plant will allow Paris Baguette to supply fresher, higher-quality products to the Southeast Asian and Middle Eastern markets, strengthening the competitiveness of its brand in these regions. Additionally, the company plans to expand its Halal-certified product offerings to North America, Europe, and Africa, further broadening its global customer base. SPC Samlip's ASEAN Expansion Strategy SPC Samlip, a major SPC Group subsidiary specializing in food manufacturing and distribution, is also planning to manufacture export-oriented Halal products at the Johor facility. In March, SPC Samlip plans to establish a new ASEAN subsidiary, leveraging the Johor Production Center as a strategic base for expanding business operations in Southeast Asia and the Middle East. The subsidiary will serve as a regional hub for distributing finished products manufactured in Korea. It will also supply frozen dough to cafes, hotels, and large-scale retailers in the region. In addition, SPC aims to develop tailored B2C (Business-to-consumer) products suited to local market trends and preferences, ultimately accelerating its entry into the retail market. Government Recognition and Future Global Expansion During the ceremony, YAB Dato' Onn Hafiz Bin Ghazi, Chief Minister of Johor, stated, "Paris Baguette's decision to establish its first Halal-certified food hub here is a significant development for Johor and Malaysia as a whole. This facility will not only strengthen Johor's role within the Johor-Singapore Special Economic Zone but will also provide numerous employment opportunities, contribute to the local economy, and further enhance Malaysia's reputation as a global leader in Halal food production." Jin-soo Hur, President of SPC Group, added, "The completion of the Johor Production Center marks a significant milestone in strengthening our global supply chain and securing a solid foundation for sustainable growth. As a strategic base for the Halal market, this facility will enable us to accelerate and enhance the effectiveness of our global expansion." SPC Group is actively establishing production hubs across key global regions, including the Johor plant in Malaysia, the Tianjin plant in China (built in 2017), and an upcoming facility in Texas, USA. The company is on track to achieve its Vision 2030, aiming to become a "Great Food Company" with 12,000 stores worldwide by 2030.

SPC completes halal-certified bakery plant in Malaysia

SPC Group announced Wednesday that it had completed the construction of a bakery plant in Johor, Malaysia, as part of its strategy to enter the $2.5 trillion halal food market. During the inauguration ceremony on Tuesday, SPC Group Chairman Hur Young-in stated, “With our Johor plant as a strategic base, we aim to bring healthy and joyful flavors to 2 billion Muslim consumers across Southeast Asia and the Middle East.” The event was attended by Johor Chief Minister Onn Hafiz Bin Ghazi, South Korean Ambassador to Malaysia Yeo Seung-bae, and SPC executives, including President Hur Jin-soo, Paris Baguette Asia-Pacific, Middle East, and Africa division Head Hana Lee and SPC Samlip CEO Kim Bum-soo. The Paris Baguette Johor production center will serve as a hub for supplying halal-certified bakery products to Southeast Asia and the Middle East. The bakery currently operates in six Southeast Asian countries and has signed franchise deals with Thailand, Brunei and Laos, and plans to further expand to Saudi Arabia and the UAE. SPC Group doubled its initial investment to approximately $56 million to integrate advanced automation and safety systems, ensuring high-quality production. The 12,900 square-meter facility houses seven production lines, capable of producing up to 300,000 bakery products per day, reaching 100 million annually. Samlip, a subsidiary of the SPC Group, also plans to produce halal-certified products at the new plant. The company will establish an ASEAN subsidiary this March, using the Johor plant as a hub for distributing Korean-manufactured products across the region. Samlip will also supply frozen dough to cafes, hotels, and retailers while developing B2C products tailored to local markets. "Paris Baguette’s decision to establish its first halal-certified food hub here is a significant development for Johor and Malaysia as a whole,” Johor Chief Minister Onn Hafiz Bin Ghazi stated. “This facility will provide numerous employment opportunities, contribute to the local economy, and enhance Malaysia’s reputation as a global leader in Halal food production." SPC Group is actively expanding its global business by establishing production hubs in key regions, such as the Tianjin plant in China and the upcoming Texas plant in the US. The company aims to operate 12,000 stores worldwide by 2030, spurring to achieve its vision to become a "Great Food Company.”

SPC to build $160 million bakery plant in Texas

South Korean bakery giant SPC Group has confirmed plans to build its largest overseas production plant in the United States, a $160 million investment to accelerate the expansion of its flagship brand, Paris Baguette, across the Americas. According to the group Monday, it has acquired a 150,000-square-meter site for a facility in Highpoint Business Park in Burleson, Texas, to serve as a production hub for Paris Baguette stores in North America and future markets in Central and South America. Construction is set to begin this summer, with completion targeted for the second half of 2027, a company official said. While SPC Group plans to invest $160 million in constructing the bakery plant, Johnson County and the City of Burleson have agreed to provide $10 million in subsidies and the State of Texas will offer tax benefits for equipment purchases. Altogether, these incentives will provide up to $14 million in support. The facility will be SPC Group’s largest overseas plant, surpassing its 20,800-square-meter bakery in Tianjin, China, and its 16,500-square-meter halal-certified factory in Johor Bahru, Malaysia. The US plant is projected to generate around 450 jobs, placing it among the top five employers in Burleson. Positioned as a critical supply chain hub for the American market, the US facility’s capacity will scale with Paris Baguette's growth, aiming for a production output of 500 million products annually by 2030. Currently with 210 stores across North America, the brand plans to open 100 new outlets this year and expand from 29 states to 35. By 2030, it aims to reach 1,000 stores. The Texas plant will also serve as a training facility for local shop owners and provide a strategic base for SPC Samlip, one of the group’s affiliates, to enhance its response to the North American market, where its K-food confectionery exports have gained traction. "Establishing a local plant in the US will be a pivotal turning point for our expansion into the US, as well as North and Central America," said SPC Group President Hur Jin-soo. "We will continue striving to promote K-food in the global market while accelerating our global business localization strategy." In January, SPC Group Chairman Hur Young-in, along with the group’s president, met with local political and government officials in the US to discuss economic cooperation and investment plans. The chairman also held private meetings with the company's American executives to finalize details on the bakery plant investment, according to the company official.

SPC chair cleared of tax evasion

SPC Group Chairman Hur Young-in has been cleared of tax evasion charges in a second trial involving controversial stock trading among group affiliates. The Supreme Court ruled on Thursday, declaring Chair Hur not guilty. Former SPC Group President Cho Sang-ho and current SPC CEO Hwang Jae-bok, who were co-defendants in the case, were also acquitted. Hur faced allegations of selling Mildawon stocks, another SPC company producing flour, at lower prices to SPC Samlip in December 2012. The stocks were formerly held by SPC affiliates Paris Croissant and Shany during a December 2012 sale to SPC Samlip. At the time, each share was sold at 255 won ($0.18), significantly lower than their estimated value of 1,180 won in 2011 or the acquisition price of 3,038 won in 2008. Prosecutors argued that these transactions enabled SPC's founder to evade up to 7.4 billion won in gift taxes over the past decade, while causing financial losses of 5.81 billion won to Shany and 12.16 billion won to Paris Croissant. In February, Hur was acquitted in the first trial, due to insufficient evidence, but prosecutors appealed the decision. In September, the Seoul High Court also cleared Hur of tax evasion charges. The court reaffirmed its position, stating that it was difficult to deem the valuation method for Mildawon shares illegal. "It is challenging to classify this as an act of breach of trust or to conclude that the defendants conspired with deliberate intent," the court explained. The prosecution's second appeal was dismissed by the court.

SPC Group cleared of W64.7b antitrust fine

South Korean bakery giant SPC Group has been fully absolved of a 64.7 billion won ($46.8 million) fine, as the Supreme Court upheld a ruling in the company's favor in its lawsuit against the nation's antitrust watchdog for allegedly unfairly supporting its affiliates. The Supreme Court confirmed on Monday a lawsuit filed by five SPC Group affiliates, including SPC Samlip, against the FTC, to cancel the fine. In July 2020, the FTC claimed that SPC funneled a total of 41.4 billion won in profits to SPC Samlip, the group's only listed company, between April 2011 and April 2019, to support the owner's family. The FTC insisted that the intention was to maintain the group's ownership succession scheme and secure management rights by boosting the stock price of SPC Samlip. The FTC imposed corrective orders and fines on the affiliates and filed a complaint with the prosecution against SPC Group Chairman Hur Young-in and CEO Hwang Jae-bok. The corrective order aimed to prevent SPC's baking affiliates, including Paris Croissant, SPL, BR Korea and Shany, from unfairly supporting SPC Samlip by involving the firm in transactions when making purchases from their production affiliates. It also mandated the cessation of the transfer of flour manufacturing company Mildawon's stock shares, held by some affiliates, to SPC Samlip at a low price. However, earlier in January, the Seoul High Court ruled that most of the FTC's actions were unjust. The court explained that it could not be considered an act of unfair support as it had not been proven that SPC Samlip did not play an actual role in the transactions. The penalty imposed by the FTC was also annulled at the time. Although the fine was dismissed, the Supreme Court upheld the corrective order, concluding that the flour transactions between SPC affiliates and SPC Samlip were conducted on a "sizable scale," and judged that "excessive economic benefits" were provided to SPC Samlip. The issue in the latest administrative litigation largely overlaps with the criminal trial of the chairman, who was indicted on anti-labor allegations. Hur was acquitted in the first trial and is currently on trial at an appellate court.

Sprinkles Cupcakes coming to Seoul

Sprinkles Cupcakes, the famed cupcake specialist from California, is poised for a debut in the Korean market this year – its first venture beyond US borders, according to the company on Friday. Sprinkles said it will introduce its trendy cupcakes, cookies and chocolate treats globally this year, with imminent expansions planned for Singapore and Malaysia as well. For the upcoming Seoul store, the firm is expected to team up with Korean bakery giant SPC Samlip. For other international openings, US real estate developer Bridgeport Investments will be involved. SPC, the force behind the nation’s No. 1 bakery chain Paris Baguette, has secured operational rights here for global brands including Baskin-Robbins and Shake Shack. Established in 2005 in Beverly Hills, California, Sprinkles now boasts more than 70 locations throughout the US as well as 24-hour cupcake ATMs – the first of their kind having launched in 2021. The cupcake bakery aims to inaugurate over 18 international stores from this year. Commencing the global expansion journey in Korea, the bakery is slated to extend into Europe, South America and Southeast Asia.

SPC Group's W64.7b antitrust fines cancelled

South Korean food and bakery giant SPC Group has been spared from a fine of 64.7 billion won ($48.6 million) as Seoul’s high court ruled in favor of the company in its lawsuit filed against the nation’s antitrust watchdog. In 2020, the Korea Fair Trade Commission imposed fines, together with a corrective order, alleging that SPC affiliates, including Paris Croissant, SPL, BR Korea, and Shany, unfairly supported SPC Samlip, the group’s only listed firm, to raise its stock price in an apparent move to help the group’s ownership succession scheme. Back in 2011, SPC Samlip purchased Shany’s sales division, while Paris Croissant and Shany acquired shares of Mildawon, a flour manufacturing affiliate, in 2012. The FTC claimed that SPC Samlip made “excessive and unfair” profits through a series of internal transactions, which affected its stock price positively and raised the profits for the owner family. But the Seoul High Court on Wednesday denied most of the allegations, ordering the FTC to cancel the fines. The court admitted that there was an unfair element to the internal purchases, but it said the financial benefits for SPC Samlip were not considered “sizeable.” The FTC’s administrative order was retained due to the same logic. But the court denied the alleged ties between the transactions and the group’s succession scheme, citing the fact that Chairman Hur Young-in’s two sons have acquired no additional stakes in SPC Samlip over the past 15 years. SPC welcomed the ruling, saying, “We are relieved that most of the allegations have been solved. We plan to come up with our response after thoroughly reviewing the ruling.”

Reflecting on bumper year for K-food

Food makers expanding aggressively overseas amid saturation at home South Korea posted a new record high in food exports last year, driven by the steadily increasing global interest in Korean culture and strategic initiatives by food companies who have rigorously promoted their products overseas. The total export value of agricultural and food products reached $9 billion by the end of the third week of December, according to the Ministry of Agriculture, Food and Rural Affairs. This marks a 3 percent increase compared to the same period in 2022, setting a new all-time high. Ramyeon, or Korean instant noodles, recorded the biggest 24.7 percent growth in exports to $938.3 million, becoming the nation’s top export food item. Exports of strawberries and rice surged more than 20 percent to $73.1 million and $213.2 million, respectively, while kimchi, the Korean staple, saw a 10.3 percent increase to $153.2 million. “Amid the saturated market at home, big food companies have been aggressively expanding into overseas markets, especially since the end of the COVID-19 pandemic in late 2022,” said Moon Jung-hoon, head of the Food Business Lab at Seoul National University. Undoubtedly, ramyeon had its best year yet, driving up K-food exports overall. Operating profit at the nation's top ramyeon maker, Nongshim, more than doubled to 55.6 billion won ($42.9 million) in the third quarter of 2023 compared to a year ago. Its overseas subsidiaries, including the US and China unit heavyweights, posted more than 20 billion won in operating profit. Sales of the flagship Shin Ramyun, the bestselling ramyeon here, showed robust growth, with overseas sales continuing to outpace those at home since 2021. "A continuous upswing in the sales growth of Shin Ramyun within major US grocery chains is seen post-pandemic," a Nongshim official said. "Based on the increased productivity of the second plant in the US built in 2022, we will prioritize distribution network management strategies, securing prime placement of Shin Ramyun on major US trading lines, including Walmart." With plans underway to commence construction of a third plant in the US by 2025, the company aims to achieve $1.5 billion in sales in North America by 2030. Meanwhile, the producer of the renowned Buldak noodles, Samyang Foods, achieved a record operating profit of 43.4 billion won in the third quarter of last year, marking a remarkable 124.7 percent year-on-year increase — the highest quarterly performance in the company's history. Overseas sales, which reached 239.8 billion won, made up 70 percent of the company’s total sales during the same period. Samyang Foods currently manufactures all its exports in Korea without any overseas plants. "The company attributes more than 80 percent of its overseas sales to Buldak series, and it has observed a rising trend in the popularity of new flavors exotic to foreign consumers," an official at Samyang said. Looking ahead, Samyang Foods plans to expand its product offerings by diversifying product lineups and incorporating local spices alongside its original version of Buldak, according to the official. In 2022, a total of eight food companies, including CJ CheilJedang, Daesang, Dongwon F&B, Hyundai Green Food, Ottogi, Nongshim, SPC Samlip and Lotte Wellfood posted annual sales of 3 trillion won or more. Industry sources predict that an additional four -- Lotte Chilsung Beverage, CJ Freshway, Pulmuone and Samsung Welstory -- are expected to join the top list in 2023. Their full-year earnings have yet to be released. Among them, Daesang's Jongga kimchi brand, distributed to over 40 countries, achieved $65 million in export sales in the third quarter of last year. The amount represents 52 percent of the nation’s total kimchi exports. CJ CheilJedang, the nation’s largest food company, has made a big global push under its Bibigo brand, with seven strategic items -- mandu or Korean dumplings, processed rice, sauces, frozen chicken, kimchi, gim or dried seaweed sheets, and rolled foods. More recently, the company added popular street foods such as tteokbokki and gimbap into its global strategy products. In the third quarter alone, the company posted 8.5 trillion won in sales, with overseas sales making up 47.1 percent. For the whole fiscal year, its sales are estimated to reach some 30 trillion won. The K-food industry's global pursuit follows the rise of K-culture, which is poised to make significant strides in the coming year as well. "Despite the low economic growth worldwide and increasing uncertainties brought up by the lingering wars, K-food culture is emerging as a global phenomenon alongside the popularity of K-content and K-pop," said an official of the Korea Food Industry Association. "This is evident in bibimbap securing the top spot on this year's Google most searched recipe, and a growing trend in the US for frozen gimbap, reflecting its integration into everyday life." In search of further growth potential abroad, food companies and the government are set to collaborate on strengthening export capabilities and widening global K-food markets this year, the official added.

SPC Samlip partners with Asian supermarket chain H Mart

South Korean confectionery company SPC Samlip said Thursday that it had signed a partnership with H Mart, the largest Asian supermarket chain in North America, as part of efforts to further increase its global presence. H Mart operates some 120 supermarkets in the US, Canada and the UK. In 2022, it posted 4.3 trillion won ($3.28 billion) in sales. Under the partnership, SPC Samlip will increase its supply of confectionery products to be distributed through H Mart's extensive sales network. “SPC Samlip has already been shipping around 90 different types of products to H Mart, and the combined export volume is worth 2 billion won a year," said a Samlip official. "With the latest partnership, both trade volume and revenue are expected to further increase." The two companies agreed to jointly develop new food products and introduce them through H Mart stores as early as the first half of 2024. SPC Samlip said it will also support H Mart's overseas expansion by supplying products to its stores outside the US. SPC Samlip has been ramping up efforts to expand its global presence. In October, the company attended the Anuga food trade show to promote Korean dessert products, including yakgwa, or honey cookies. During the fair, the company held meetings with around 170 buyers. The company said it will continue to extend its distribution channels globally to secure a firmer footing in global markets.

Korea's yakgwa booming on back of ‘newtro’ trend, media coverage

Honey-glazed appeal of traditional Korean cookies sticks in hearts of young generation One chilly autumn afternoon in October, students of Sookmyung Women's University in Seoul poured out onto the streets for lunch. A group found their way into a small bakery by the name of Monday Picnic down an alley, where they treated themselves to yakgwa financier cakes. “I have never really been a fan of yakgwa, but I became curious after it started trending. From yakgwa cookies and financier to ice cream, there are several forms, and they're all pretty good,” said Jo Min-jeong, a 25-year-old college student. Yakgwa, a traditional honey-glazed cookie that has commonly been used for ancestral rituals, is among the old-timey snacks that have been gaining fresh popularity in South Korea recently. Local retailers have already moved to cash in on the recent fad, with GS25's Haengun Yakgwa snacks selling over 3 million bags since its June launch. The latest yakgwa craze stands apart from the retro trend that has boosted the popularity of pre-2010s pop culture content. It is prevalent among a young population today who do not have the strong connection to the snack as generations past. One would have to trace further back into the 20th century to find a generation who frequently enjoyed the honey cookies. Other than conscripted soldiers -- who only had access to a handful of munchies in the barracks -- about the only time one could find yakgwa was during such aforementioned rituals. But thanks to social media, especially YouTube and TikTok, the snack that dates to the Goryeo Kingdom (918-1392) has come back into prominence among the young generation of South Korea today who call themselves “halmaenials” -- a combination of the Korean word for "granny" and "millennials" that refers to youngsters with a nostalgic taste that reminds them of their grandparents. The popularity of yakgwa does not depend on the power of nostalgia of those who had enjoyed it in their youth, but rests on the back of the "newtro" trend sweeping across the youth in Korea. It is defined by reinterpretation of vintage or retro lifestyles, which means yakgwa is back -- but it has taken on a new form in the recent craze. Yakgwa trend among young Booking concert tickets online for popular singers in Korea is a challenge that borders on impossibility: IU recently uploaded a video of her booking tickets for her own concert, which showed the seats disappearing within seconds of sales opening. The newly coined “yak-keting” -- "yakgwa" plus "ticketing” -- refers to the act of frantically clicking for online reservations of yakgwa snacks from popular bakeries. Boutique companies such as Jangin Hangwa take online reservations for yakgwa products at 5 p.m. on Mondays, Wednesdays and Fridays, which become fully booked within moments. Popular yakgwa brands usually add their own signature touches to differentiate themselves from other products. Bomnal&Yakgwa features frozen yakgwa promoted as “crunchy on the outside and chewy on the inside,” and like other popular yakgwa online shops, sells their products on a reservation basis. The brand's owner is an influencer who is among those who made yakgwa cool for the younger generation -- YouTuber Jeong Hye-yeong, who goes by "Yeosu Unnie.” The YouTuber has been a yakgwa advocate, collaborating with Hyundai Department Store for a pop-up shop while introducing yakgwa recipes. Yakgwa's nationwide popularity is nothing new. In fact, Goryeo King Gongmin actually issued a countrywide ban on making yakgwa in the 14th century, as excessive yakgwa consumption was causing a shortage of wheat, honey and sesame oil. As rice farming made up most agriculture on the Korean Peninsula at the time, wheat products mostly relied on Chinese imports. Yakgwa's forbidden popularity extended into the following Joseon era (1392-1910), and some kings decreed that those who were caught making yakgwa during the ban would be punished with severe flogging. Despite being an old-timey munchie, an overwhelming majority of yakgwa lovers now can be found among the youth. Local convenience store CU's yakgwa sales for April were 12.5 times those of April last year, and 40.9 percent of sales were to customers in their 20s, while another 42.2 percent were sold to 30-somethings. SPC Samlip, one of the bigger food and beverage companies in the country, recently rolled out its latest K-dessert products at the Anuga trade fair in Cologne, Germany, and the company said the yakgwa products sparked the biggest reactions. Some experts say yakgwa has a special appeal to the younger generation here. “Yakgwa is perceived generally as being made by hand, leading young people to see it as a type of 'classy' dessert that is not very detrimental to health,” said Lee Eun-hee, a professor of consumer science at Inha University. “(Yakgwa) is easy to carry around, and can be enjoyed in various formats. It has a lot of elements that can appeal to young people.”