Dongwon Group, which has emerged as a major player in the mergers and acquisitions (M&A) market, is once again making a push into the bio business. About three years after its failed acquisition of Boryung Biopharma, the conglomerate is recruiting bio industry experts as it seeks new growth engines.
According to industry sources on Wednesday, Dongwon Industries has appointed Nam Taek-jong, former CEO of RFBio, as its new senior vice president in charge of business strategy, launching a full-scale review of potential bio company acquisitions. Nam, a pharmacist by training who holds a master's degree in pharmacy from Seoul National University, is a seasoned expert in the bio sector, having served as CEO of RFBio, a company that produces dermal fillers and skin boosters. RFBio, founded in 2020, is a medical device company that recorded revenue of 18 billion won and an operating loss of 3.7 billion won last year. Nam is known to be overseeing new business initiatives and M&A strategy planning at Dongwon Group.
The appointment is interpreted as a strong signal of the group's commitment to pursuing new businesses and M&A. Having previously explored and abandoned a bio business entry, the group appears to be taking a more cautious approach this time by bringing in an outside specialist from the review stage.
In February 2023, Dongwon Industries signed a memorandum of understanding (MOU) with Boryung Partners to acquire Boryung Biopharma, a vaccine-focused company, and announced it would conduct an exclusive due diligence review. The company disclosed at the time that it would also receive exclusive preferred negotiation rights depending on the due diligence results. However, about a month later, the due diligence priority was terminated and the acquisition fell through. Dongwon Group is now known to be exploring entry into the bio sector in a way that creates synergies with its core tuna and food businesses.
Dongwon Group has diversified its business portfolio by expanding into different industries since the era of founder and honorary chairman Kim Jae-chul. The group entered the financial sector with the acquisition of Korea Investment & Securities (formerly Hanshin and Dongwon Securities) in 1982. Dongwon Systems is also expanding beyond its existing packaging materials business into secondary batteries. The current review of a bio business entry is seen as part of this broader strategy to secure new growth drivers.
The move gains pace under the management philosophy long championed by honorary chairman Kim: "Sticking only to the core business, or neglecting it entirely — both lead to crisis." Dongwon Group Chairman Kim Nam-jung also said in his New Year's address earlier this year, "Let us pursue qualitative growth by keeping all options open, including building strategic partnerships with competitive companies and pursuing M&A that can generate synergies."
A Dongwon Group official said, "Dongwon Group is currently pursuing future growth engines and business portfolio diversification across areas including the global food business, secondary battery materials, and port terminal operations. To this end, we are strengthening the role of the business strategy organization." The official added, "This appointment reflects the commitment under Chairman Kim Nam-jung's leadership to solidify a control tower that will drive major strategic initiatives such as new business pursuits and large-scale M&A." The official continued, "We expect synergies between Senior Vice President Nam's bio business expertise and the group's new business initiatives."
