Korea Ginseng Corp. opens R&D center in US

Korea Ginseng Corp., the country’s leading ginseng manufacturer, said Wednesday it set up a research and development center in California in a bid to continue its development of Korean ginseng customized for the US market and ramp up its sales overseas.

KGC said with the new R&D center it plans to research ways to improve the functions of its flagship red ginseng products sold in the US -- including boosting the products' capability to improve consumers' immunity, reduce fatigue and increase memory. In addition to product development, the center will oversee the manufacturing process and quality of locally produced health products.

According to KGC, the center will further function as a strategic hub for the company's foray into neighboring foreign markets such as Central and South America, while collecting data about global health beverage and health food market.

KGC's foray into the US follows the company's establishment of its first American branch in California in 2003.

The company has seen an average annual growth rate of 15 percent over the past five years in the US market, and, according to the company, it has high hopes to continue its growth in the US market with its strategy to target local customers and expand its presence in major American retail channels such as Costco, along with a slew of online retail US channels such as Amazon, eBay and iHerb.

KGC said for its plans going forward, it will diversify its brand portfolio to include health products that vary in form, such as capsules, tablets and gummies to more actively reflect local preferences.

"Our US R&D Center will contribute to the construction of local production infrastructure while strengthening the development of customized ginseng products for local consumers," said Her Chul-ho, CEO of KGC, during an opening ceremony for its R&D center on Saturday.