After the management structure of Dongwha Pharm(000020), famous for the liquid digestive brand "Hwalmyung-su," was reorganized around CEO and President Yun In-ho, the fourth generation of the owner family, changes are also appearing in its business strategy.
According to the pharmaceutical industry on the 14th, CEO Yun In-ho, 42, is pushing hard to penetrate overseas markets. The son of Chairman Yun Do-jun, Yun joined Dongwha Pharm in 2013 and was promoted to CEO in Mar. last year. He now leads the company under a co-CEO structure with professional manager CEO Yu Jun-ha.
In the years before and after Yun took the helm, the company carried out sweeping organizational and personnel overhauls. In the process, key executives such as Executive Vice President Lee In-deok, head of the overseas division, and Managing Director Lee Taek-ki, head of advertising and PR, left the company, and others, including Senior Managing Director Kim Dae-hyun, who led OTC marketing, and Director Park Ki-beom, Hwalmyung-su PM, were also reported to have resigned. Vice Chairman Yun Gil-jun, Yun's uncle, stepped back from front-line management, and his older sister, Managing Director Yun Hyun-kyung, moved to an advisory role.
Following the organizational revamp, Yun is zeroing in on overseas markets. Dongwha Pharm's marketing strategy is also shifting significantly to match.
Dongwha Pharm was founded on Sept. 25, 1897, marking its 129th anniversary this year. Attention is on whether the long-standing drugmaker, which has grown mainly in the domestic market, can secure a new growth engine on the global stage.
◇ Yun In-ho sets sail for the U.S. with 129-year-old Hwalmyung-su
The first mover in its overseas push is the global Hwalmyung-su product branded "Hwalmyung-su 1897 Liquid," named "K.O.D." K.O.D takes the initials of "Korea Original Digestive."
This is not about exporting the existing Hwalmyung-su, but about creating a separate product aimed at overseas consumers from the outset. Based on Hwalmyung-su, it is a quasi-drug with taste and ingredients tailored to the preferences and characteristics of overseas consumers.
For K.O.D's global model, Yun chose "KORUS," one of the boy groups that HYBE(352820) produced after BTS. Fronted by KORUS, the company plans to promote overseas a new post-meal culture of enjoying K.O.D after eating Korean food under the message "K-Food with K.O.D."
Another reason cited for the choice is that KORUS is building recognition overseas, including reaching No. 3 on the Billboard 200, the main U.S. Billboard album chart.
The company first launched the product at domestic pharmacies and duty-free shops, then began targeting the U.S. market this month. It sells at U.S. supermarkets and pharmacies and Olive Young, and it operates a K.O.D brand store on Amazon. Company employees said, "Our key task is not only to establish K.O.D in the U.S. market but to make it a hit, and we are concentrating our resources."
◇ Unexpected demand, "Qulip ointment" spreads by word of mouth among foreign tourists
The lip cheilitis treatment "Qulip ointment" has also recently been identified by the company as a new growth item. It is the only OTC drug in Korea approved to treat chapped lips and cheilitis.
It was launched in Korea in Jul. 2024, and foreign tourists visiting Korea are emerging as a new consumer segment. Qulip posted 3.5 billion won in pharmacy sales last year, up 678% from the previous year. In Jan. this year, about a year and a half after launch, cumulative sales reached 6 billion won.
Qulip grew through consumer word of mouth. A domestic influencer introduced Qulip as one of the products they use, and foreign tourists introduced it on social media as a "must-buy medicine in Korea," creating so-called viral promotion.
The company is seizing this as a growth opportunity and is also planning investment in production facilities to expand capacity. Dongwha Pharm said, "The product, which started with domestic word of mouth, has met a new consumer segment—foreign tourists—showing the potential for overseas business," adding, "To respond to increased demand, we plan to invest in Qulip production facilities centered on the Chungju plant and expand production capacity."