How Dongwon’s new chairman will transform company
Dongwon Group’s new chairman is drawing keen attention from industry watchers as to how he will steer the group to further expand its markets from its signature canned tuna and food products to non-food industries such as ship operation, logistics and rechargeable batteries, according to the country’s major conglomerate, Friday.
Kim Nam-jung, the second son of group founder Kim Jae-chul, was promoted on Thursday, filling the fiveyear vacancy in the group’s top office.
He said following the promotion he will adapt the group to the consistently changing consumer markets by making key decisions quickly and committing to investment without hesitation.
Dongwon has already begun diversifying its capabilities under Kim’s leadership as vice chairman. The group now aims to produce 20,000 tons of salmon from two farms it built in Gangwon Province, with the first 10,000 tons to become available in 2026.
The production is expected to supply half the amount of salmon the country is mostly importing, according to Dongwon.
The company is also planning to launch in April the country’s first shipyard under complete automation at Busan New Port, hoisting Dongwon to become a global terminal operator. With the project, Dongwon is expected to acquire HMM, the country’s only container ship operator, a bid the group failed to achieve last year when it had vied with Harim Group.
Dongwon is also expected to expand its business in rechargeable batteries further. Earlier this month, the group’s subsidiary Dongwon Systems showcased its portfolio of relevant breakthroughs, including ultra-thin aluminum foil, materials for cylindrical rechargeable battery cans and bendable cell pouches, at InterBattery 2024 in Seoul.
Dongwon will also bolster its food business, the industry it started with in 1969.
“We’re planning to introduce a new consortium brand in partnership with StarKist by utilizing the American firm’s local distributive network and expand consumer markets for our food products,” a Dongwon official said.
StarKist is an American canned tuna producer Dongwon acquired in 2008.
“We’ll proceed with aggressive mergers and acquisitions in the food industry to introduce new products for global consumers,” he said.
Dongwon is a symbolic conglomerate in Korea, having grown through multiple mergers and acquisitions, including of StarKist, logistics firm Dongbu Express and packaging firm Techpack Solution.
“While StarKist has shown steady growth since being acquired by Dongwon, Dongwon F&B, despite its overseas branches in the United States, Japan and China, operates only 5 percent of its business overseas. The group needs more aggressive M&As to increase its market share abroad,” another company official said.
Since his promotion to Dongwon’s vice chairman in 2014, Kim has been leading the group’s key M&As and tech investments that number 10 altogether. He established the group’s four key value chains that consist of seafood, food products, materials and logistics, and invested 1.3 trillion won ($964 million) during the past four years to identify potential future growth engines.
A year after he became vice chairman, Kim acquired KeumCheon Meat, an online shopping platform for local livestock meats, expanding the group’s seafood-based business to livestock meat distribution. In 2017, he led Dongwon to acquire Dongbu Express to expand further the group’s revenue markets to logistics, introducing Dongwon Loex.
In 2021, Dongwon, under his direction, acquired MKC, a local cylindrical battery can manufacturer, to further expand the group’s market to rechargeable battery packaging.
The series of M&As shows how the country’s signature canned tuna maker has been leaping forward to take on key future industries.
Kim, upon his latest promotion, mentioned and his father’s achievements and managerial philosophy attested throughout the past 50 years.
“Dongwon will attract love and support from not just customers but also stakeholders including employees and executives, subsidiaries and shareholders,” the new chairman said.
Dongwon currently runs 18 subsidiaries and 26 sub-affiliates including Dongwon F&B, Dongwon Home Food and Dongwon Loex Cold Storage. The group’s overall sales last year registered over 10 trillion won.