Dongwon Group reorganize its food business affiliates to expand its overseas sales. (Image from Dongwon webpage)
SEOUL, April 14 (Korea Bizwire) — Dongwon Group, a major food company in South Korea, said Monday it will reorganize its food business affiliates to expand its overseas sales as part of its broader strategy to become a global player.
At board meetings, the boards of directors approved a plan to make Dongwon F&B Co. a wholly owned subsidiary of Dongwon Industries Co., the group’s holding company, through a stock exchange, the company said.
Dongwon F&B, well known for its canned goods and ready-made meals, was spun off from Dongwon Industries in 2000.
The plan also includes consolidating four food-related units, including food service provider Dongwon Home Food Co. and U.S. subsidiary Starkist, into a single business division.
Dongwon Group said the restructuring is aimed at creating synergy across its food operations and securing new growth drivers by strengthening its global presence.
The two companies will hold separate shareholders meetings on June 11 to vote on the merger plan.
After the completion of the stock exchange as planned, Dongwon F&B will be delisted on July 31, it added.
Through this restructuring, Dongwon Group aims to increase the share of global sales in its total revenue to 40 percent by 2030, up from 22 percent last year.
The group also plans to enhance its research and development (R&D) efforts, launching a Global R&D Center and raising its R&D budget to 1 percent of total sales by 2030, compared with 0.3 percent in 2024.
“This stock exchange merger is designed to accelerate our global sales growth by reorganizing our food affiliates,” an official from Dongwon Group said. “We plan to discover new growth engines to enhance corporate value and deliver returns to shareholders.”
(Yonhap)
