Seoul: Dongwon Group, a major food company in South Korea, announced plans to reorganize its food business affiliates as part of its strategy to expand its overseas sales and become a global player. The reorganization involves making Dongwon F and B Co. a wholly owned subsidiary of Dongwon Industries Co., the group's holding company, through a stock exchange, as approved by the boards of directors during recent meetings.

According to Yonhap News Agency, Dongwon F and B, known for its canned goods and ready-made meals, was initially spun off from Dongwon Industries in 2000. The current plan includes consolidating four food-related units, such as the food service provider Dongwon Home Food Co. and the U.S. subsidiary Starkist, into a single business division. This restructuring aims to create synergy across Dongwon's food operations and secure new growth drivers by strengthening its global presence.

The companies involved will hold separate shareholders meetings on June 11 to vote on the merger plan. Once the stock exchange is completed as planned, Dongwon F and B will be delisted on July 31. 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 is also set to enhance its research and development efforts by launching a Global R and D Center and raising its R and D budget to 1 percent of total sales by 2030, compared to 0.3 percent in 2024. An official from Dongwon Group stated, "This stock exchange merger is designed to accelerate our global sales growth by reorganizing our food affiliates. We plan to discover new growth engines to enhance corporate value and deliver returns to shareholders."