Dongwon Group Vice Chairman Kim Nam-jung has been promoted to chairman, marking his ascension to the top leadership position of one of South Korea‘s major conglomerates.

The decision to appoint Kim as chairman was made during Dongwon Group’s board meeting on Thursday. The promotion comes after a decade since his appointment as vice chairman in 2014.

Kim, born in 1973, is the second son of Kim Jae-chul, the founder and honorary chairman of Dongwon Group.

After graduating from Korea University with a degree in sociology in 1996, Kim began his career at Dongwon Industries, starting from the grassroots in production and sales roles.

He completed an MBA program at the University of Michigan in 2003.

He built his management capabilities through various positions at Dongwon F&B, including head of marketing strategy at Dongwon Industries, head of management support at Dongwon Systems, chief operating officer of StarKist in the U.S., and vice president of Dongwon Enterprise.

With his tenure as vice chairman, Kim spearheaded over ten M&A deals and technological investments.

He expanded the business scope beyond the tuna industry into seafood, food, materials, and logistics sectors, establishing a robust value chain.

Investments in exploring future growth areas amounted to about 1.3 trillion won ($962 million) over the past four years.

In 2014, Dongwon acquired Techpack Solutions with an investment of about 275 billion won. In 2015, Dongwon acquired a wholesale livestock online mall for 45 billion won, expanding its food business from seafood to livestock distribution.

In 2021, Dongwon expanded its business into secondary battery packaging by buying MKC, a cylindrical battery can maker.

Kim’s promotion fills the chairman’s position, which had been vacant for five years since the retirement of the honorary chairman in 2019.

Dongwon Group aims to strengthen its four core businesses in seafood, food, materials, and logistics, leveraging Kim‘s extensive experience in leading both large and small mergers and acquisitions (M&A) in the past.

Under Kim’s leadership, Dongwon Group is expected to accelerate its focus on future-oriented businesses such as second battery materials and smart port systems.

In 2017, Dongwon Group acquired Dongbu Express for about 420 billion won, transforming it into a comprehensive logistics company.

In April, it plans to open the country‘s first automated port at Busan New Port to become a global terminal operator.

The acquisition of HMM fell through last year, but industry insiders noted that Dongwon Group may try again as the sale talks with Harim Group fell through.

Amid global economic challenges impacting Dongwon Group’s packaging business, efforts to revitalize it remain a priority.

Last year, Dongwon Industries, the group’s holding company, recorded consolidated sales of 8.94 trillion won and operating profits of 464.4 billion won, down by 0.9 percent and 6.1 percent, respectively, compared to the previous year.

On the other hand, the group’s food sector demonstrated robust growth despite domestic consumption slowdowns, attributed to diversified product offerings and operational efficiencies. Dongwon F&B, a subsidiary specializing in food products, achieved a 8.4 percent increase in revenue and a 29.5 percent surge in operating profit compared to the previous year.

The shift towards home-cooked meals during the pandemic drove increased sales of canned tuna and food items such as seasoned seaweed, chilled ham, and instant rice.

Subsidiaries engaged in B2B transactions, such as Dongwon Home Food, Dongwon Dear Food, and Dongwon Farms, also contributed to the overall performance improvement.

Looking ahead, Dongwon Group plans to solidify its existing businesses through operational efficiency and profitability enhancements while aggressively pursuing future investments. Attention is particularly focused on the timing and targets of resuming M&A activities, considering the conglomerate‘s substantial cash reserves of over 1.3 trillion won and additional fundraising capabilities through subsidiary listings.

While negotiations with potential targets such as HMM, Boryung Biopharma, and McDonald’s Korea did not materialize last year, Dongwon Group remains poised to explore new opportunities in line with its strategic vision under the leadership of the new chairman.

By Kim Geum-yi and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]