Questions remain over Dongwon's plans to buy McDonald's Korea, Boryung Biopharma

• Published date: 25 February 2023
• Publication title: The Korea Times

Dongwon Industries, the holding firm of Dongwon Group, signed a memorandum of understanding with Boryung Partners recently to acquire a controlling stake in Boryung Biopharma, which is estimated to be worth 500 billion won ($384 million).

Once the acquisition deal is finished, Dongwon Group will be able to enter the biopharmaceutical industry for the first time in its 54-year history.

"We will conduct due diligence exclusively on Boryung Biopharma," Dongwon Industries said in a regulatory filing Thursday. "We will make an announcement within the next three months or when further details are confirmed."

The decision came after the company reportedly became the only participant last month in a preliminary bid to acquire McDonald's Korea, which is also estimated at around 500 billion won. The canned tuna maker has yet to confirm rumors about its intent to buy the U.S. hamburger franchise's Korean operation.

Industry insiders view Dongwon Group's aggressive moves as part of its efforts to seek new growth engines under the leadership of Vice Chairman Kim Nam-jung, the second-oldest son of the group's founder, Chairman Kim Jae-chul.

The vice chairman had temporarily stopped M and A deals in the wake of the COVID-19 pandemic, but recently resumed looking for corporate acquisition targets after Dongwon Industries became the group's holding company through a merger last November with Dongwon Enterprise.

Given that Dongwon Industries held 283.9 billion won in cash or cashable assets as of the third quarter of last year and that the company posted record earnings in...