Dongwon F&B Delisted as of July 31
Restructured Under Holding Company
Collaboration and Exports Among Group Food Affiliates
Accelerating Pilot Projects Including Pet Food
On August 4, Dongwon Group announced that it had completed the comprehensive stock swap procedure between Dongwon Industries and Dongwon F&B, making Dongwon F&B a wholly owned subsidiary. In April, the group had announced the comprehensive stock swap between Dongwon Industries and Dongwon F&B as part of its efforts to expand exports and restructure its business. Over the following four months, the group completed a series of procedures, including board resolutions and a general meeting of shareholders. As of July 31, Dongwon F&B was delisted, and new shares of Dongwon Industries were issued. As a result, Dongwon Industries issued 4,523,902 new shares, increasing its total number of shares to 44,147,968, which is approximately 10.25% of the total shares.
The response from the capital market has been positive. Before the stock swap was announced (from January 2 to April 14), Dongwon Industries' average daily trading volume was 17,724 shares. After the announcement (from April 15 to July 31), this figure increased 2.5 times to 62,081 shares. The stock price also rose by about 30% during the same period, from an average of 35,205 won to 45,965 won. The group interpreted this as recognition from the capital market for its shareholder return policies, such as 'eliminating duplicate listings' and 'biannual dividends,' as well as its efforts to enhance corporate value.
Dongwon Group also unveiled its plan to launch the 'Global Food Division (GFD).' The GFD will serve as an overseas business control tower, encompassing four domestic and international food affiliates, with Dongwon F&B at its core, including Dongwon Home Food. Initially, Dongwon F&B and Dongwon Home Food have consolidated their research and development (R&D) and production capabilities to launch various pilot projects. The strategy is to select items with high potential in overseas markets, conduct pilot operations, and then refine and expand them based on local feedback. Through this approach, the group aims to minimize risk, increase execution capability, and build an optimized product portfolio for the global market.
First, Dongwon Group is accelerating the expansion of its overseas pet food business. Dongwon F&B's own pet food brand 'NutriPlan' has been showing steady growth in the United States and Japan. In line with this trend, the group plans to establish overseas production lines three times larger than those in Korea. The StarKist production facility in American Samoa is being considered as a dedicated pet food production base. StarKist also plans to develop locally tailored linked products through joint marketing with Dongwon F&B and Dongwon Home Food.
Dongwon Tuna has begun to strengthen its marketing efforts for overseas expansion. Dongwon F&B recently selected BTS member Jin as its brand model and launched a limited edition 'BTS Jin Edition.' This product will be exported to the United States, Oceania, and Southeast Asia starting in August.
The home meal replacement (HMR) brand Yangban is targeting overseas markets with products such as tteokbokki, seasoned seaweed (Yangban Gim), and ready-to-eat meals. Launched in 2016, Yangban tteokbokki is already being exported to over 30 countries and, in the first half of this year, entered mainstream distribution channels such as Walmart in the United States and Costco in Japan. Dongwon F&B plans to nurture Yangban as a leading K-food brand.
In addition, the probiotic drink 'Take Alive,' which sold 13 million units in Japan alone in one year, is set to be exported to China following its launch in Taiwan. Dongwon Home Food's low-sugar and low-calorie sauce brand, Vivid Kitchen, is also expanding exports to the United States, Australia, Vietnam, and Hong Kong with products such as 'Kimchi Chipotle Mayo,' 'Kimchi Pesto Sauce,' and 'Korean Ssamjang BBQ Sauce.'
A Dongwon Group representative stated, "Through business restructuring, we are consolidating the group's core competencies and laying the foundation for full-scale growth in overseas business expansion," adding, "We will continue to make every effort to enhance shareholder value and ensure sustainable corporate activities."
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