[Click e-Stock] "Udoomji Farm Establishes Korea's Largest Smart Farm... Profitability to Improve Through Crop Diversification"

On June 13, KB Securities analyzed that Udoomji Farm is expected to improve profitability through the establishment of the largest smart farm agricultural complex in Korea and crop diversification.

Established in 2001, Udoomji Farm is recognized as a leading one-stop smart farm solution provider in Korea. Udoomji Farm is the only company in Korea operating an AI data-based smart farm, and it produces 'Tomango', a high value-added crop, generating higher profitability compared to ordinary tomatoes. Recently, the company has been preparing for a second leap forward through crop diversification and new business expansion, such as cultivating European vegetables and developing the Seosan Agricultural Bio Complex.

KB Securities researcher Lim Sanguk stated, "The core of future agriculture lies in the convergence of high value-added crop cultivation using smart farms," and added, "Expectations are rising for the global expansion of Udoomji Farm, a leading company in both K-crops and K-smart farms."

He further explained, "With the rapid aging of rural populations, global demand for smart farms?whose high productivity and efficiency have been proven?is expected to continue growing. Udoomji Farm, which has vertically integrated the smart farm value chain, is likely to benefit from this trend."

In addition to its main product, Tomango, Udoomji Farm is expanding its crop portfolio to include European vegetables such as romaine and butterhead. This is expected to not only improve profitability but also strengthen market competitiveness. In particular, with the advent of the zero-calorie era, demand for stevia agricultural products, including stevia tomatoes, is increasing, indicating a positive outlook in the new product market as well.

Furthermore, Udoomji Farm has officially begun the development of the 'Seosan Agricultural Bio Complex', the largest smart farm complex in Korea. Through its subsidiary Nine Farm, the company signed a sales contract with Hyundai Engineering & Construction on May 30 to acquire approximately 152,000 square meters of land for 15.15 billion KRW. This is expected to generate annual sales of over 30 billion KRW.

Researcher Lim emphasized, "The appeal of smart farms is being highlighted as the new administration is emphasizing the spread of smart agriculture, including the use of AI and robotics." This project involves investments from Chungcheongnam-do, Seosan City, and regional revitalization funds, and Udoomji Farm will serve as the main shareholder and oversee the project as part of an SPC (with a total project cost of approximately 330 billion KRW).