Paik Jong-won, CEO of Theborn Korea, addresses the ‘Paik Ham' pricing controversy on his YouTube channel on Jan. 26. (Captured from YouTube channel ‘Paik Jong-won')

Paik Jong-won, CEO of food and beverage company Theborn Korea and a judge of Netflix's cooking competition show "Culinary Class Wars," has been embroiled in controversy over his canned ham product, "Paik Ham," for more than ten days.

Despite his explanation, public sentiment has turned against him, damaging his reputation for trustworthiness. Theborn Korea's stock has also suffered, dropping for seven consecutive trading days and losing over 380 billion won ($290 million) in market value.

The controversy began after Paik promoted a 45 percent discount on a gift set of nine 200-gram cans, reducing the price from 51,900 won to 28,500 won. He claimed the product, made with 100 percent domestic pork, offered great value, saying, "If I were you, I'd buy ten sets." The set quickly sold out on Theborn Korea's online mall.

However, some consumers compared Paik Ham with Spam, the market leader, and found it relatively expensive despite having lower pork content.

A ten-can box of Spam (200 grams each) was priced between 18,500 won and 24,000 won on online shopping sites as of Jan. 31, up to 10,000 won cheaper than Paik Ham. Additionally, Spam contains 91.3 percent pork, while Paik Ham has 85.4 percent. Although Paik Ham uses only domestic pork, Spam's pork is sourced from Korea, the United States, Spain, and Canada.

Some accused Paik of inflating the original price to create the illusion of a larger discount. Critics also questioned why a product with lower pork content was priced higher.

Paik Jong-won promotes the sale of Paik Ham on his YouTube channel on Jan. 17. Captured from his YouTube channel

Paik defends pricing

Paik responded on Jan. 26 through his YouTube channel, insisting the price was not a marketing trick. "Since Theborn Korea is a latecomer in the canned ham market, our production costs are higher than those of larger manufacturers. We produce in smaller volumes, which significantly raises costs," he said. "This is not a sales tactic."

He added that the price cut was possible because Theborn Korea sells directly to consumers, bypassing traditional retail distribution. "If Paik Ham sells well and we reach mass production, the cost of production will drop significantly. At that point, we will lower the retail price."

Regarding the lower pork content, he said that Paik Ham was specifically developed for budae jjigae (army base stew), with added seasonings to enhance the broth's flavor. "The difference in pork content is 14 grams per can, which costs less than 100 won. We wouldn't reduce the pork content just to save 100 won."

Paik admitted he should have explained the recipe better, saying, "We focused on making it taste better, and that's why the pork content is slightly lower. I should have mentioned this when announcing the discount."

Paik jong-won defends Paik Ham pricing on YouTube. Captured from his YouTube channel

Public remains unconvinced

Despite his clarification, the backlash has not subsided. As of Jan. 31, Paik's video had surpassed 500,000 views with over 11,000 comments, most of them critical.

Many consumers argued that the issue was not just about pricing but about misleading consumers. One consumer said, "It's not just that Paik Ham is expensive. Other online stores also sell it for 20,000 to 30,000 won, yet Theborn Korea claimed it was originally 51,900 won and offered a huge discount. That's what misled consumers."

Some also highlighted inconsistencies in Paik's past remarks. On a previous TV program, he advised small restaurant owners, "Taste is fundamental, but high prices will drive away customers." He also said that pork content is a key factor in pricing processed meat, saying, "Sausages with more pork are more expensive."

However, in his recent video, he claimed he had not considered pork content comparisons when pricing Paik Ham.

One user said, "On TV, he scolded small business owners, saying customers won't just open their wallets because the owner has struggles. Now, he's doing the exact same thing." The comment received nearly 4,000 likes.

As the controversy drags on, Theborn Korea's stock has taken a hit. The company, which was listed on the Korea Exchange (KOSPI) last November, saw its market capitalization fall from 4.86 trillion won on Jan. 16 to 4.47 trillion won as of Jan. 31, marking a seven-day losing streak — the longest since its listing.

Theborn Korea declined to issue a further statement, saying on Jan. 31, "Paik has already addressed the issue on his YouTube channel, and we have nothing more to add."

Paik Jong-won emphasizes that taste is essential but prices should not be high while advising restaurant owners on a past terrestrial TV program. Captured from broadcast

This article from the Hankook Ilbo, a sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.