DongKoo Bio signs MOU to move into SE Asian healthcare market

DongKoo Bio & Pharma Co. has built a bridgehead for expansion toward the world, including Southeast Asia by joining hands with LVMC Holdings, the largest private company in Laos. Analysts commented that it is a sign of CEO Cho Yong-joon, the second-generation owner, kicking off his own style of management.

The South Korean company said on Thursday that it recently signed a memorandum of understanding (MOU) with LVMC Holdings to undertake a project to nurture leading companies in the pharmaceutical industry. Earlier on Jan. 17, Mr. Cho had visited Laos with six working-level managers to discuss ways to establish a Korean-made generic drug manufacturing plant.

LVMC Holdings is a company that manufactures and sells automobiles and motorcycles in Vietnam, Myanmar, and Cambodia, in addition to Laos. It has not yet entered the healthcare sector. The Lao company has chosen DongKoo Bio as a partner to advance into the pharmaceutical area.

DongKoo plans to speed up its entry into the healthcare market of 10 ASEAN countries, starting with a drug production plant in Laos. It expects that there will be business opportunities in various fields such as functional health foods, cosmetics, and medical devices.

"To take on the global contract manufacturing organization (CMO) market, we moved into a healthcare market in one of the 10 ASEAN countries. We will make full use of the strengths of the two companies to become a total healthcare leader covering prevention, diagnosis, treatment, and management," said CEO Cho.

Write to Ji-Hyun Lee at bluesky@hankyung.com