Dongwon Industries, the holding company of Dongwon Group, announced on the 4th that it has completed the procedure for the integration of Dongwon F&B as a 100% subsidiary through a comprehensive stock exchange. It seems poised to embark on significant export expansion and business restructuring.
According to Dongwon Industries, the company's average daily transaction volume is 62,081 shares, which is 2.5 times higher than before the comprehensive stock exchange announcement (average from April 15 to July 31). During the same period, its stock price recorded a 30% increase to 45,965 won.
Earlier in April, Dongwon Group announced a comprehensive stock exchange between Dongwon Industries and Dongwon F&B. Following a board resolution and a shareholders' meeting, on the 31st of last month, it completed the delisting of Dongwon F&B and the issuance of new shares by Dongwon Industries. The number of additional shares being listed this time is 4,523,902, accounting for 10.25% of the total shares (44,147,968 shares).
Dongwon Group is also accelerating collaboration and exports among its food subsidiary companies. As the first phase of its recently announced "Global Food Division," it has begun various pilot projects by consolidating the research and development (R&D) and production capabilities of Dongwon F&B and Dongwon Home Food.
First, Dongwon F&B plans to establish a new pet food production line overseas that is three times the size of the domestic market. Currently, the Seosamoa factory, which is a production base for Starkist, is being considered as a strong candidate for expanding the dedicated pet food production line. Starkist plans to develop locally specialized products through joint marketing with Dongwon F&B and Dongwon Home Food.
Dongwon Tuna, the leader in the domestic tuna canned market, is also preparing for global business expansion. Dongwon F&B has selected Jin, a member of BTS, as the model for the Dongwon Tuna brand and has introduced limited-edition products. This is seen as a signal for an expansion into the global market. Currently, Dongwon F&B plans to export the products to the United States, Oceania, and Southeast Asia starting this month.
The 40-year-old traditional Korean home meal replacement (HMR) brand "Yangban" plans to venture into the overseas market centered on tteokbokki, seasoned seaweed (Yangban Gimmari), and convenient meals. The probiotic drink "Take Alive," which sold 13 million units in Japan alone last year, is set to be exported to China following Taiwan. The long-standing product Coolpis is also reported to be on the verge of export.
In addition, Dongwon Home Food is ramping up its exports with the low-sugar and low-calorie sauce brand Vivid Kitchen, featuring ▲kimchi chipotle mayo ▲kimchi pesto sauce ▲Korean ssamjang BBQ sauce to markets including the United States, Australia, Vietnam, and Hong Kong.
A representative from Dongwon Group noted, "We are laying the groundwork for substantial growth in global business by consolidating the core capabilities of the group through business restructuring," adding, "We will continue to focus all efforts to enhance shareholder value and ensure sustainable corporate activities."