Justification of eco-friendly organic ginseng products

and its R&D

Shin, Wang-Soo

Global market

World market share of

Herb medicines

World market size of

Herb medicines
Ginseng
$20 billion

Herb medicines
10%

USA, EU, etc.

10%

CHINA
0.6%
KOREA

Total : $200 billion

Export of Korean ginseng

World market share of
Herb medicines
USA, EU, etc.
10% CHINA

0.6% KOREA

Export of Ginseng and Red-ginseng products

Export amount of Korea ginseng

165 USD million in 1995

55 USD million in 2002

Export

Production

124 USD million in 2010

Production

Export

YEAR

The amount of production and Export in Korea

Production of Korean ginseng cultivation

is 27,000 TON (in 2009)

Customers needs

The trend of world food market changed...

Customers needs

Products of
Eco-friendly, organic, health, safety
and well-being oriented value

Seven trends in global food market

Socio-economic
environmental

Aging

Consuming trend

Substances &
Characteristics

Making convenient

Eating-out, fast food, HMR

(Home Meal Replacement),
extension of delivery service,
semi-food material, take-out

Well-being oriented

Healthy, eco-friendly, organic,

functional and safe food is
preferable

Emotional
consumption

Seek multiple goods mixed

with brand, design, grace,
fun and culture

Value-oriented

Pay for value serviced and

premium goods market
extend

Participating

Information through internet,

twitter, etc extends and
customers participate

Increase of
one-person homes
Increase of women
economic activities
Increase of
leisure time
Decrease of
birth rate
Strengthening of
consumer right
Communication
maximizing trend

Global environment in Agrifood Industry

Food security
Skyrocket of crude oil and international grain price, Spread of new energy
exploitation, Extension of emerging market such as China, India, etc and increase
of population

Food Safety
Certification of GMP, HACCP, ISO, Extraneous Product Liability Law, Reinforcement
of restriction, BSE, foot-and-mouth disease, AI, pesticide residue, GMO food,
Traceability, Harmful additives, insecticide, Chemicals, Radioactivity, etc

FTA
Reinforcement of competitiveness of Agrifood industry

Health and Safety

GAP, Spread of eco-friendly and organic agriculture

Dynamics of global ginseng market

Asian Ginseng

American Ginseng

Korean Ginseng

Chinese Ginseng

Cultivated Ginseng

Eco-friendly, organic
cultivation, Sanyangsam,
GAP cultivated ginseng

Korea Ginseng Corp.

NH Hansamin

Other small & medium

sized companies

Small & medium sized

companies

Small & medium sized

companies

Red Ginseng
(Product)

White Ginseng
(Product)

Market price

Comparative table of Hong Kong market price in 2005

(500g)

American ginseng
(Top grade)

American ginseng
(Lowest grade)

Korea Red Ginseng

H$ 6,4000

H$ 733

H$ 2,400

Wild ginseng market price

(500g)

American wild ginseng

American Sanyangsam

H$ 20,000

H$ 9,600

American Wild Ginseng occupies 99% of Hong Kong Market

Re-entering strategy into Hong Kong medicinal herb market

Korean Ginseng

GAP cultivated ginseng, eco-friendly

and pesticide-free cultivation

Organic cultivated ginseng

Project of making luxury product in

Premium by Sanyangsam, white
ginseng and red ginseng and its
processed products

N. AMERICA

American Ginseng

S. AMERICA

Research & Development of product

How to develop health functional food with specific functionality

Cultivated ginseng and Sanyangsam have more or less different properties of

medicine.

Medicinal nature of cultivated ginseng takes on a little warm nature and

Sanyangsam has a little cold nature.

Cultivated ginseng contains mainly Triol based Saponin

Sanyangsam contains mainly Diol based Saponin

Research & Development of product

Cultivated ginseng contains mainly Triol based Saponin
Sanyangsam contains mainly Diol based Saponin


Comparison of the saponin contents with Cultivated ginseng(4, 6 years old) and
Sanyangsam

The contents of total saponin

Sanyangsam 0.648%

>

Cultivated ginseng 0.270%(4 yrs), 0.280%(6 yrs)

The ratio of Protopanaxadiol and Protopanaxatriol group

Sanyangsam 3.258%

>

Cultivated ginseng 2.456%(4 yrs), 2.183%(6 yrs)

average (%, w/w)

ginsenoside content

statistic
significance

variance

4-years-old

6-years-old

woods
grown
ginseng

4-years
-old

6-year
-old

woods
grown
ginseng

F-value

P-value

Tsa)

0.270 0.024

0.280 0.027

0.648 0.090

0.005

0.005

0.051

56.322

0.000

PD/PTb)

2.456 0.286

2.183 0.119

3.258 0.587

0.707

0.112

2.221

7.326

0.001

Research & Development of product

Cultivated ginseng contains mainly Triol based Saponin
Sanyangsam contains mainly Diol based Saponin


Comparison of the saponin contents with Cultivated ginseng(4, 6 years old) and
Sanyangsam

The contents of ginsenoside-Rb1(CNS suppression effect)

Sanyangsam 0.222%

>

Cultivated ginseng 0.060%(4 yrs), 0.087%(6 yrs)

The contents of ginsenoside-Rd

Sanyangsam 0.216%

>

Cultivated ginseng 0.070%(4 yrs), 0.048%(6 yrs)

average (%, w/w)

ginsenoside content

statistic
significance

variance

4-years-old

6-years-old

woods
grown
ginseng

4-years
-old

6-year
-old

woods
grown
ginseng

F-value

P-value

Rb1

0.060 0.007

0.087 0.013

0.222 0.040

0.000

0.001

0.010

46.981

0.000

Rd

0.070 0.012

0.048 0.008

0.216 0.080

0.001

0.000

0.041

14.809

0.000

Research & Development of product

Cultivated ginseng contains mainly Triol based Saponin
Sanyangsam contains mainly Diol based Saponin

CNS suppression effect

It is possible to develop health functional food with specific

functionality

according

to

physical,

chemical

and

technology which specializes in the certain Ginsenoside.

biological

Research & Development of product

White, red ginseng and its processed products made of GAP cultivated
ginseng, sanyangsam and organic cultivated ginseng has the same
pattern in their formulation and type of products.

Research & Development of product

Development of
eco-friendly organic ginseng

Cooked food

Processed products

Research & Development of product

Cooked food
Soup
Samgyetang(chicken stew with ginseng)
honeyed ginseng and slice
Tea
Extract
Drink
Wine
Fresh juice
Cold meal
Powder

Research & Development of product

Processed products
Material oriented type

Producer, Year of root, Origin, Fresh ginseng oriented, Dry ginseng

oriented, Above-ground part, Underground part, Separate type, Mixing
type, Red ginseng, White ginseng

Formulation oriented type

Concentrate, Powder, Drink, Tonic, Pill, Capsule, Tablet, Candy, Jelly,

Honeyed ginseng, Honeyed ginseng slice, Extract powder, Soap, Quasidrugs such as cosmetics, etc.

Technology oriented type

Extraction, Concentration, Fermentation, Dry, Juice extraction,

Ginsenoside graduation inducement(heating, pressurizing, acid,
microbial, fermentation), etc.

Change of Korean and global consumption trend

GAP cultivated ginseng & its processed products

Organic cultivated ginseng & its processed products

Sanyangsam & its processed products

Korean and global market

The customer demands will create new consumption.

Change of Korean and global comsumption

Its time to consider and carry out together !

Raw material cultivation and production

Research and development of processed products

Export and distribution of domestic and overseas market

KOREAN GINSENG RESEARCH CO.,LTD.

Thank you for your attention