[BizLeader] Seo Jeong-min, CEO of Cellomax Science, "Full-Scale Global Market Expansion After KOSDAQ Listing"

Engaging in the Health Functional Food Business... "Providing Quality Ingredients at Reasonable Prices"
"Growing into a Luxury Health Supplement Brand Like Hermes"

"Cellomax Science has grown this much despite having no special sales activities so far. After listing on KOSDAQ and entering overseas markets, we expect to achieve even faster growth."

Seo Jeong-min, CEO of Cellomax Science. Photo by Cellomax Science

CEO Seo Jeong-min stated this listing goal in an interview with Asia Economy held at Cellomax Science's headquarters in Yongin, Gyeonggi Province.

Cellomax Science, which started in 2014 as Yaksa-wa Geongang Co., Ltd., is a company engaged mainly in premium health functional foods based on high-quality raw materials. Its main businesses include health supplements, cosmetics, and general pharmaceuticals. Last year, sales and operating profit were 19.3 billion KRW and 4.6 billion KRW, respectively. For the first half of this year, sales were 10.6 billion KRW and operating profit was 3.2 billion KRW. By sales proportion, health foods account for the highest at 89.98%, followed by cosmetics (5.49%) and general pharmaceuticals (3.75%).

Cellomax Science is pursuing a KOSDAQ listing through a merger with Hanwha Plus No.3 SPAC. The merger price is 2,000 KRW, and the merger ratio is 1 to 0.2270405. The shareholders' meeting for merger approval is scheduled for the 23rd. The listing date for the new shares from the merger is December 13.

CEO Seo Jeong-min is not only the company’s representative but also a pharmacist by training. The reason he founded the company was to supply products using good raw materials. He said, "Having worked at pharmacies and pharmaceutical companies, I realized that the market and suppliers had different needs. Pharmacies want to supply good products, but companies try to make profits by cutting costs, so their desires differed."

CEO Seo emphasizes that the products made by Cellomax Science are sold at reasonable prices based on good raw materials. For example, the premium intestinal health product Cellomax Myungpum Ace Probiotic Strong sources its raw materials from Denmark, and the joint health product Cellomax Refrinol Forte sources raw materials from New Zealand. He said, "There are not many places that can copy our products," adding, "It takes about two years from research to product launch, requiring a long development period."

In particular, Cellomax Science stresses that its achievements so far have been made solely through word of mouth. In fact, Cellomax Science’s advertising expenses were 42.94 million KRW in 2021, 124.34 million KRW in 2022, 286.59 million KRW last year, and 297.04 million KRW in the first half of this year. Therefore, Cellomax Science expects its growth to accelerate further. He explained, "We hired salespeople for the first time starting at the end of 2023. We have now increased to 10 people and are continuously creating offline touchpoints, which is producing results."

He also emphasized that achieving balanced sales across products is a company strength. He said, "Generally, a company’s flagship product accounts for a large portion of total sales, but we have various products achieving steady performance. Even if one product enters its decline phase, it does not significantly affect overall sales."

Cellomax Science plans to actively enter overseas markets using funds raised after listing. It has strategically entered the Hong Kong market, which has similar income levels and dietary culture, and has been listed on HK TVMALL, the largest online shopping mall platform. The company plans to diversify sales channels by entering drugstores and pharmacy chains in Hong Kong and then expand into the Chinese market. He said, "Hong Kong is geographically close and has similar ethnicity and income levels. We have been preparing extensively since 2023 and are currently preparing brochures and advertisements." He added, "We plan to enter the Hong Kong offline market simultaneously with the listing, and next, we will enter the Chinese market."

Domestically, the company is also considering diversifying sales channels. Currently, Cellomax Science’s products are sold only through its own mall and pharmacies. He emphasized, "Since we want to introduce our products to many people, we are considering expanding distribution channels. By next year, we will be able to see how we will expand our distribution network."

Other products such as cosmetics and general pharmaceuticals will also be promoted to increase sales. CEO Seo said, "Our cosmetics are mainly functional products that can be sold in pharmacies, and sales are steadily generated. Since we are also pursuing overseas market entry for functional cosmetics, there will be opportunities."

Cellomax Science aims to grow into a global luxury brand of health functional foods like Hermes. CEO Seo said, "We are already regarded as a luxury brand in pharmacies, but our goal is to target the global market and become like a Korean Wave. By making the best products with the best raw materials, we will exceed everyone’s expectations and grow into a company that can shock the market like a tornado."