"Transforming into an Eco-Friendly Pesticide Company, Sales Double"

Kwon Byung-oh, CEO of Cheonjihin Biotech
Strong Support from Jungjin Gong Policy Fund
Targets Over 20 Billion KRW in Sales This Year

Byung-oh Kwon, CEO of Cheonjihin Biotech

"I have always believed that a system ensuring safety from the people producing in the factory to the farmers using the products and the final consumers of agricultural products must be established, covering everything from production to distribution." This is the reason why Kwon Byung-oh, CEO of Cheonjihin Biotech, decided to focus on 'eco-friendly pesticides' when newly entering the pesticide and fertilizer production industry in 2019. For CEO Kwon, who was well aware of soil pollution caused by pesticides, eco-friendly pesticides were perhaps a natural step. His judgment proved correct. As global demand for organic food has increased, the business has grown, and from the perspective of a small and medium-sized enterprise, they have been able to achieve both business growth and the challenging ESG (Environmental, Social, and Governance) management goals.

On the 30th, CEO Kwon said, "Interest in the environment and safe food is a global trend, not just in our country," adding, "Even when producing agricultural products using chemical products, environmental safety must be considered within the broader framework." Although the company has now established itself as an eco-friendly pesticide manufacturer, in its early days, Cheonjihin Biotech's main business was the distribution of crop protection products. CEO Kwon only had a vague idea that if they continued in distribution, they might eventually be able to enter manufacturing. This was because the pesticide industry is a part of the fine chemicals sector, requiring significant investment and technological development for product manufacturing, making entry difficult."

However, the crisis came quickly. Due to unstable market conditions, the burden of costs gradually increased. It was a waste to let the insight and manufacturing capabilities accumulated through distribution go unused. CEO Kwon decided to shift the business from distribution to manufacturing. He began investing in manufacturing facilities and business site land with the goal of producing eco-friendly pesticides. Reflecting his belief that the manufacturing process should also be eco-friendly when producing eco-friendly products, the manufacturing process was composed of facilities that reduce carbon emissions. Additionally, solar power was utilized to enable product production. Facilities capable of handling designated waste were established to minimize environmental pollution burdens for environmental protection and toxic substance purification.

A decisive help in this process was the support from the Small and Medium Business Corporation (SBC). Through SBC's business transition support project, they received diagnosis, consulting, and policy funds when entering manufacturing. SBC's policy funds solved the initial investment problem, which was a major obstacle. CEO Kwon explained, "Even with the same chemical pesticides, if they are in powder form, dust can scatter, so we changed them to liquid form. Also, pesticide products can have odors, so we switched auxiliary materials to plant-based ones, eliminating the smell even if the price increased," adding, "SBC's funding played a role in equipping manufacturing facilities to shift towards safety."

The results are becoming visible. With financial support, the product lineup has expanded, and sales have doubled compared to 2019 when they only distributed, reaching 15.2 billion KRW last year. This year, they aim for sales exceeding 20 billion KRW. To respond to the increased production volume after transforming into an eco-friendly pesticide manufacturer, they are also promoting the establishment of a second factory focused on reducing carbon emissions and improving energy efficiency, supported by SBC's 'Net-Zero Fund.' They have also joined a government project for developing eco-friendly microbial pesticides, which is expected to enable stable product development and simultaneous certification of product items.