Jeonggwanjang
Korean ginseng brand under Korea Ginseng Corporation.
Last updated August 31, 2026
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Overview
Korea Ginseng Corporation (KGC) is a South Korean ginseng company whose principal consumer brand is CheongKwanJang, also written as Cheong Kwan Jang. The company traces its institutional origin to 1899, when Samjungkwa was established as a forerunner of the modern organization. Ginseng production and distribution subsequently developed under a state-controlled monopoly, formalized in 1908. Over time, the business passed through organizational forms associated with the government Monopoly Bureau and Korea Tobacco & Ginseng Corporation before becoming Korea Ginseng Corporation and operating as a subsidiary of KT&G. The CheongKwanJang name emerged in the early 1940s. It was introduced as an official-authentication mark at a time when growing demand for Korean red ginseng had encouraged the circulation of counterfeit roots. The name is generally understood to convey the idea of government-approved or officially certified ginseng. That history helped make the mark a central quality and provenance signal in the Korean ginseng trade, and it remains the most visible identity associated with KGC products in Korea and overseas. KGC manufactures and markets a broad range of ginseng-based products. Its best-known portfolio is built around Korean red ginseng, including whole-root grades, extracts, powders, sliced products preserved with honey, tonics and other ready-to-consume formats. Product names cited in descriptions of the CheongKwanJang range include Korean Red Ginseng Heaven, Earth and Good, Korean Red Ginseng Extract, Korean Red Ginseng Powder, Honeyed Korean Red Ginseng Slices and Korean Red Ginseng Tonic. The range allows the company to serve traditional gift purchases as well as consumers seeking convenient daily-use health products. The company has historically held a dominant position in South Korea's ginseng market. Reference material describes CheongKwanJang as accounting for more than 80 percent of the Korean ginseng market and approximately 35 percent of the country's broader health-products market in 2011; these figures are historical rather than current market measurements. After the end of the state sales monopoly in 1996, KGC continued to occupy a leading position while competing in a more open health and wellness market. Internationally, KGC has expanded especially across East Asia, including China and Taiwan, while also maintaining overseas operations or branches in the United States, Japan, the Philippines and Indonesia. Its products are reported to be exported to more than 40 countries. International expansion has relied on the combination of Korean red ginseng's established cultural reputation, CheongKwanJang's authenticity-oriented branding and multiple product formats. KGC also became associated with sports administration after KT&G transferred ownership and naming rights for several teams in September 2010. The renamed portfolio included men's basketball in Anyang, women's volleyball in Daejeon, table tennis in Anyang and badminton in Daejeon. The teams' success in 2012 was subsequently characterized as a golden period for KGC's sports properties. The company is therefore both a consumer-health products business and a corporate brand with a visible role in Korean sports sponsorship and team ownership.
History
Korea Ginseng Corporation's history reaches back to 1899, when Samjungkwa was established as a forerunner of the modern organization. Ginseng was subsequently administered through a state-linked system, and in 1908 the business was placed under monopoly control. This arrangement shaped the production, authentication and distribution of Korean ginseng for much of the twentieth century. The CheongKwanJang identity emerged in the early 1940s. Increased demand for Korean red ginseng, particularly for export, was accompanied by the spread of counterfeit roots. The Monopoly Bureau of the Japanese General Government used the CheongKwanJang label to identify officially approved product. The name later became the principal consumer-facing brand associated with KGC and retained its connection with authenticity and controlled provenance. The institutional owner and name of the business changed over time. The operation was associated first with the Monopoly Bureau and later with Korea Tobacco & Ginseng Corporation. The government's ginseng sales monopoly ended in 1996, opening the market to greater competition. Korea Ginseng Corporation continued as a leading producer and marketer, eventually operating as a subsidiary of KT&G. KGC's core business is the production of ginseng products, particularly Korean red ginseng. Its portfolio expanded beyond whole roots into extracts, powders, sliced products, tonics and other formats intended for different consumption habits. CheongKwanJang products became prominent in Korea and were also marketed internationally. The company's international activity has been especially visible in East Asia, including China and Taiwan, and it has reported exports to more than 40 countries, with overseas branches or operations in the United States, China, Taiwan, Japan, the Philippines and Indonesia. KGC's history also includes a controversial set of clinical trials conducted in China between 1998 and 2001. The trials examined whether a product described as ginseng pills could help prevent colorectal cancer; a separate trial addressed stomach-cancer prevention. The informed-consent materials identified possible blood-pressure elevation and excluded people with hypertension. However, reference accounts state that Shen Xinlian, an illiterate farmer who already had elevated blood pressure, was enrolled without proper informed consent. She later developed extremely high systolic blood pressure, was not advised to stop the product, and died of uremia in 2004. Her family brought legal action against the trial institutions but did not establish causation. The events were reported in the context of wider clinical-trial controversies that preceded stronger Chinese legislation and oversight measures. A further phase began in sports. In September 2010, KT&G transferred ownership and naming rights for a group of teams to KGC. The portfolio included men's basketball in Anyang, women's volleyball in Daejeon, table tennis in Anyang and badminton in Daejeon. All achieved notable results in 2012, a season later described as a golden age for KGC's sports activities. Today, KGC remains an active South Korean ginseng company with dual headquarters in Seoul and Daejeon, a large domestic presence and an international distribution network centered on CheongKwanJang.
- 2012
KGC teams achieved broad sporting success
[1]KGC-associated basketball and volleyball teams won playoff championships, while table-tennis and badminton athletes also won titles.
- 2010
Sports portfolio transferred to KGC
[1]KT&G transferred ownership and naming rights for several sports teams to KGC.
- 1998
China clinical trial period began
[1]A three-year China-based clinical trial involving ginseng pills began, examining possible colorectal-cancer prevention effects.
- 1996
Government sales monopoly ended
[1]The government's monopoly over ginseng sales ended, after which KGC continued to compete as a leading market participant.
- 1940
CheongKwanJang identity introduced
[1]The CheongKwanJang mark was developed in the early 1940s to authenticate approved Korean red ginseng and distinguish it from counterfeit roots.
- 1908
Ginseng monopoly formalized
[1]The ginseng business was placed under monopoly control, beginning a long period of state-managed sales and distribution.
- 1899
Institutional predecessor established
[1]Samjungkwa was established as the predecessor of the organization that later became Korea Ginseng Corporation.
Products and positioning
Premium, authenticity-focused Korean ginseng and health-products company
Korean red ginseng
CheongKwanJang Korean Red Ginseng
The company's principal branded Korean red ginseng range, sold in multiple grades and formats. CheongKwanJang combines the historical authentication mark with KGC's packaged consumer products and is marketed in South Korea and international markets.
Ginseng extract
Korean Red Ginseng Extract
A concentrated Korean red ginseng preparation designed for convenient consumption. Extract is one of the core formats in KGC's portfolio and is offered under the CheongKwanJang brand in packaged health-product channels.
Ginseng powder
Korean Red Ginseng Powder
Powdered Korean red ginseng intended to provide a flexible format for consumption or incorporation into drinks and foods. It forms part of KGC's effort to serve customers who prefer alternatives to whole roots or liquid products.
Sliced ginseng confection or supplement
Honeyed Korean Red Ginseng Slices
Sliced Korean red ginseng preserved with honey, offering a sweeter and more immediately consumable presentation than unprocessed roots. The product illustrates KGC's use of preparation and packaging to broaden the appeal of traditional ginseng.
Ready-to-drink ginseng product
Korean Red Ginseng Tonic
A liquid tonic format based on Korean red ginseng. It is intended for consumers seeking a ready-to-consume product rather than a whole root, powder or concentrated extract.
Ginseng supplement
Ginseng Pills
A ginseng-pill product described in connection with clinical trials in China from 1998 to 2001. The referenced account states that the trial materials described the product as containing 0.4 mg of ginseng extract.
Controversies
2004
Ethical controversy surrounding China clinical trials
A China-based clinical trial involving ginseng pills became controversial after participant Shen Xinlian, described as an illiterate farmer, was allegedly enrolled without proper informed consent despite elevated blood pressure. She later developed severe hypertension and died of uremia. Her family sued the trial institutions but failed to prove causation. The episode was discussed within a wider series of clinical-trial incidents that prompted stronger Chinese clinical-trial legislation and oversight.
Brand decisions
2010
Sports ownership and naming-rights transferStrategyBackground
KT&G controlled a group of sports teams that were subsequently aligned with the Korea Ginseng Corporation brand.
Action taken
KT&G transferred ownership and naming rights for men's basketball, women's volleyball, table tennis and badminton teams to KGC.
Aftermath
The teams adopted KGC-related names, and their collective success in 2012 increased the visibility of the KGC name in Korean sports.
1998
China clinical research programOtherBackground
KGC-associated researchers participated in a multi-year Chinese clinical research program examining whether ginseng pills could help prevent colorectal cancer; a separate study addressed stomach-cancer prevention.
Action taken
The trials were conducted through the Cancer Institute of Zhejiang Medical University and related local health institutions.
Aftermath
The program later attracted criticism over consent and participant-safety issues, and was discussed amid broader Chinese reforms to clinical-trial regulation.
1996
Continued as a leading competitor after deregulationStrategyBackground
The government monopoly over ginseng sales ended in 1996, changing the competitive environment in which the business operated.
Action taken
KGC continued to develop its branded product portfolio and maintain a leading position in the Korean ginseng market.
Aftermath
The company remained closely associated with CheongKwanJang and expanded its consumer formats and overseas distribution.
Recent events
- 2010
KT&G transferred sports-team ownership and naming rights to KGC[1]
Other
KT&G transferred ownership and naming rights for several sports teams to Korea Ginseng Corporation, resulting in the renaming of basketball, volleyball, table-tennis and badminton teams.
- 1940
CheongKwanJang authentication mark developed[1]
Other
During the early 1940s, the CheongKwanJang name was introduced to distinguish officially approved Korean red ginseng from counterfeit roots amid rising export demand.
- 1908
Ginseng trade was placed under monopoly control[1]
Regulation · Other
The ginseng business was placed under a formal monopoly structure, a system that continued in changing institutional forms until the government sales monopoly ended in 1996.
- 1899
KGC's predecessor was established as Samjungkwa[1]
Other
Samjungkwa was established as the institutional predecessor of Korea Ginseng Corporation, beginning the state-linked organizational history from which the modern company developed.
Sources4 sources
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