By Jane Han
Staff Reporter
Lotte Confectionary's acquisition of world renowned chocolate maker Guylian, and Dongwon Group's takeover of America's best-selling tuna brand Starkist are the two latest mega transactions that acquainted the once little-known Korean names with the global food industry. But sealing the deal was the easy part, say experts, who warn that current quality control measures won't cut it overseas.
``How would international consumers react when they find blades, rusty coins and rodent heads in their food?'' says Kim Sung-tae, the head of research at the Korea Food Safety Institute, a local food safety consulting firm. ``It won't take long for such incidents to bring down these well-established brand names.''
Last week, a rusty coin was found in a snack produced by Lotte Confectionery, the nation's biggest snack maker. In March, a fragment of a disposable blade was found in a product of Dongwon F&B, the nation's largest canned fish maker. Consumers reported both cases to the food authority.
The Korea Food and Drug Administration (KFDA) found that the knife blade got into the tuna can while employees were fixing a conveyor belt at the production plant, while Lotte's case is still under investigation.
``Korea upholds some of the strictest food safety standards in the world, but the problem is working-level employees who do not take the matter seriously every day,'' says Kim, explaining that an average Korean worker's hygiene awareness is about one-third of those in advanced countries.
An official of the KFDA, who asked not to be named, agreed, saying that the rules are hammered, but companies often compromise safety for efficiency.
``Each country has its set guidelines, so Korean firms branching out abroad shouldn't attempt to cut corners,'' he said, warning that it could not only taint the corporate image, but hurt Korea's image as a whole.
To this end, however, Dongwon spokesman Kim Il-kyu says that the canned tuna expert is proud of its production standards, stressing that global manufacturers look up to Dongwon's capabilities.
``In fact, we're planning to send out our headquarters employees to the existing plant operated by Starkist in Samoa to train workers there,'' he said, adding that Korea's safety regulations are ``too rigid.''
Lotte Confectionery spokesman Moon Young-tae says guidelines in Europe are even stricter, though, emphasizing that Guylian's production line in Belgium will keep up with its local standards.
Kim, the food safety adviser, however, argues that blades and a thumb-sized coin would become a problem in any part of the world.
``When it comes to food issues, there really is no excuse,'' he said.
Taking precautions is important, but one crisis management expert also stressed the importance of doing necessary research to prepare for when mishaps occur.
``Companies should find out how consumers in various countries respond when foreign material is found in food,'' said Lee Joong-dae, a Seoul-based consultant specializing in crisis management at Edelman, a global public relations firm.
He explains that foreign companies conduct thorough consumer research before entering the Korean market, so local manufacturers should do likewise to minimize trial and error.
Lee added that while Korean consumers tend to be issue-makers of food safety cases, people in other regions may or may not be.
``I'd say it's better to find out through prior study, then facing the reality when an accident occurs,'' he said.