Taekwang Industrial Acquires DongSung Pharmaceutical, Accelerates Entry into Beauty and Healthcare Business

Taekwang Group Establishes a 'Beauty and Healthcare Platform'

Taekwang Industrial has formed a consortium with United Asset Management Company (UAMCO) to acquire DongSung Pharmaceutical, accelerating the expansion of its beauty and healthcare business portfolio.

Taekwang Industrial CI

Taekwang Industrial announced on January 14 that its board of directors had approved the acquisition of DongSung Pharmaceutical at a meeting held on January 7. DongSung Pharmaceutical is a mid-sized pharmaceutical company known for producing products such as 'Jeongro-hwan', the hair dye 'Seven-Eight', and the hair loss treatment 'Minoxidil'.

With the acquisition of DongSung Pharmaceutical, Taekwang Industrial plans to expand its business portfolio beyond its traditional focus on chemicals and textiles into the beauty and healthcare sectors. After declaring its entry into the cosmetics and household goods business, Taekwang Industrial recently established a cosmetics-specialized subsidiary, 'SIL', and by acquiring DongSung Pharmaceutical, it is building a 'beauty and healthcare platform' that encompasses pharmaceuticals, hair dyes, derma, and hair care, in addition to cosmetics.

Founded in 1957, DongSung Pharmaceutical is a mid-sized company with a 70-year history, enjoying strong market recognition in over-the-counter (OTC) medicines such as 'Jeongro-hwan' and in the hair care sector with products like 'Seven-Eight' and 'Minoxidil'. Taekwang Industrial plans to leverage DongSung Pharmaceutical's stable business structure, based on its OTC and hair care products, by integrating the group's brand management capabilities, product planning expertise, and distribution channels to enhance product competitiveness.

Taekwang Industrial also intends to boost investment in DongSung Pharmaceutical's research and development (R&D) to strengthen its mid- to long-term growth drivers. DongSung Pharmaceutical's anticancer new drug 'Phonogen' is currently in Phase 2 clinical trials, and with Taekwang Industrial's investment, a more stable environment for new drug development is expected to be established.

Taekwang Industrial will work with UAMCO, which is participating in the consortium, to improve DongSung Pharmaceutical's financial structure. Through companies such as Picostech, in which UAMCO is investing, the consortium will consider shifting production to ODM/OEM and optimizing production lines, while also improving profitability by streamlining selling and administrative expenses. In particular, sales channels owned by Taekwang Industrial affiliates, such as home shopping, media commerce, and hotels, will be utilized as infrastructure for product commercialization and marketing.

A Taekwang Industrial representative stated, "This acquisition is a strategic decision to strengthen competitiveness in the K-beauty market by combining DongSung Pharmaceutical's R&D experience and hair care expertise with Taekwang Industrial's cosmetics business strategy," adding, "We will gradually complete the value chain from product planning to manufacturing and distribution, thereby establishing a foundation for mid- to long-term growth."