Dongwha Pharmaceutical is leveraging its 129-year-old flagship product, Halmyungsoo, to spearhead its global expansion. The company has recently restructured its business model, bolstering its international operations by expanding its global business unit and appointing seasoned experts to lead the charge.
Industry sources reported on Thursday that Dongwha Pharmaceutical has elevated its global business team to a full-fledged division, naming Director Jang Jin-hyuk as its new head. Jang brings a wealth of experience in overseas sales, business development, and operations across Europe and the Americas. This strategic move signals the company’s commitment to positioning its global operations as a key growth driver.
Halmyungsoo stands at the forefront of Dongwha’s international push. This year, the company launched Halmyungsoo 1897 Liquid (K.O.D) specifically for overseas markets, initiating exports to China, Taiwan, and Mongolia. The company plans to expand its reach to Thailand and the U.S. Notably, Dongwha has shifted from simply exporting existing products to developing tailored offerings for international consumers.
The backbone of Dongwha Pharmaceutical’s global expansion remains its established over-the-counter (OTC) business. Key products such as Halmyungsoo, Pancold, Eatch, and Fucidin accounted for over 60% of total OTC sales in the first half of this year. The company reported revenues of 267.5 billion KRW (approximately 199 million USD), marking a 6.7% increase, while operating profit soared by 646.3% to 21.5 billion KRW (around 16 million USD).
Capitalizing on profits from its core business, Dongwha has diversified its portfolio. In 2024, the company acquired OTC brands like Whituben and Albothyl from Celltrion and secured exclusive distribution rights for select Takeda Pharmaceuticals products in Korea.
The company has further expanded its reach with healthcare brands BETTER and MgLAB, as well as its medical device subsidiary, Medyssey.
Dongwha has also established footholds for its overseas operations. In Vietnam, it increased its pharmacy store network from around 140 to approximately 200 since acquiring Trung Son Pharma in 2023. Meanwhile, Medyssey is ramping up its U.S. sales and recently secured the U.S. Food and Drug Administration (FDA) 510(k) certification for its cervical implants.
While expanding, the company is also streamlining operations by phasing out less profitable ventures. Recently, it decided to discontinue its 23rd domestic new drug, the antibiotic Jabarante, due to persistently poor sales since its 2015 approval. Supply is set to cease after inventory depletion by May next year.
Dongwha Pharmaceutical’s strategy appears to focus on maintaining its existing OTC business as a cash generator while redirecting resources to high-growth areas, with overseas business emerging as a key growth engine.
Under the leadership of fourth-generation owner Chief Executive Officer (CEO) Yoon In-ho, the company has undergone organizational and personnel changes. Yoon, who assumed the CEO role last year, is co-leading the company with professional manager Yoo Jun-ha. They recently elevated the global business to a separate division.
The next hurdle is establishing Halmyungsoo in international markets. It remains to be seen whether the brand’s 129-year legacy in Korea will translate to success abroad.
Securing local distribution networks and boosting brand awareness are crucial. Consequently, the performance of the overseas business under Director Jang Jin-hyuk’s leadership will likely serve as a litmus test for Dongwha Pharmaceutical’s global transition.
An industry insider revealed that Dongwha Pharmaceutical aims to uncover new business opportunities by evaluating market potential and distribution landscapes across various countries, not just for Halmyungsoo, but across its lifestyle health, beauty, and OTC portfolios.