Welbiotech Invests 20 Billion KRW... Focus on New Businesses Including EV Chargers

[Asia Economy Reporter Yoo Hyun-seok] Wellbiotech announced on the 27th that it has decided to sell its subsidiary Geumyoung ENG to focus its capabilities on new businesses.

Geumyoung ENG is a specialized company in cleanroom and dry room air conditioning equipment. Cleanrooms are workspaces that remove fine dust and bacteria in ultra-micro industries such as semiconductor devices, LCDs, precision electronic products, and genetic engineering.

Wellbiotech previously announced a new business strategy with a two-track approach focusing on regenerative pharmaceuticals and cosmetics using PDRN ingredients and electric vehicle (EV) charger business at a recent investor presentation. As part of this strategy, Wellbiotech decided to boldly streamline non-core business areas and invest 20 billion KRW out of the 35 billion KRW secured from the sale of its subsidiary Geumyoung ENG into new businesses next year.

Although the past two years involved bold restructuring of loss-making business sectors and efforts to improve the profit structure, the company could not avoid the disaster of the COVID-19 pandemic. Therefore, Wellbiotech’s management decided to sell the subsidiary to enhance shareholder value.

A Wellbiotech official stated, “The proceeds from the sale will be used for the regenerative pharmaceutical and cosmetic business utilizing PDRN and the electric vehicle charger business, which are scheduled to be actively promoted next year,” adding, “We plan to use the funds for the development and production of PDRN products and the establishment and production funding of an EV charger factory.”

He continued, “We have completed building a profitability-centered business foundation. In particular, we aim to directly produce PDRN, which has excellent commercial value but is difficult to source, and to distribute chargers in the domestic market where EV charging infrastructure is insufficient. The new business sectors, which are expected to grow rapidly, are progressing quickly, so we expect to achieve visible results starting next year.”

Wellbiotech has signed a strategic partnership with Gunsan University’s College of Marine Science and Sewon Biotechnology for PDRN-based product development and opened the ‘Wellbiotech PDRN Central Research Institute’ in Gunsan City, Jeonbuk Province this month.

PDRN® is an extracted raw material obtained from salmon semen. Approximately 10 to 15 ml is collected per fish, and about 5,000 vials (ampoules) of regenerative material can be produced from 1 kg.

Additionally, Wellbiotech is accelerating its EV charger business through joint research and development (R&D) with a Chinese EV charger specialist company and close cooperation with domestic production partner Shin-O Electronics for outsourced manufacturing.