Dongwon Group made a big announcement on Monday: its holding company, Dongwon Industries, is set to take full ownership of its food affiliate, Dongwon F&B. The plan is to merge it with three other food subsidiaries, both domestic and international, to streamline operations and strengthen its global reach.
During a recent board meeting, Dongwon Industries and Dongwon F&B agreed on a stock swap. This means Dongwon Industries will issue new shares to Dongwon F&B shareholders, with a ratio of 1:0.915. This merger aims to consolidate the group’s various food operations and enhance its competitiveness in the global market.
Dongwon pointed out that expanding internationally is essential, especially given South Korea’s slowing economy and rising competition. After the merger, the plan is to unify all food-related industries under one global division. The company hopes to boost its overseas food revenue from 22% last year to 40% by 2030.
In addition to merging, Dongwon will bring together its research and development efforts into a single Global R&D Center. They plan to increase R&D investment from 0.3% of total sales last year to over 1% by 2030.
According to experts in the food industry, such mergers can help companies better compete against larger global brands. By consolidating resources, Dongwon can innovate faster and respond better to consumer needs. This strategy is becoming increasingly common among South Korean firms as they navigate a challenging economic landscape.
A shareholders’ meeting is scheduled for June 11 to finalize the swap. Dongwon F&B is set to be delisted from the stock exchange on July 31.
This merger highlights a significant shift in the food industry, focusing on global competitiveness while addressing local economic challenges. By streamlining operations, Dongwon Group hopes to position itself for success in a rapidly changing market.
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