Prominent Korean Pharmaceutical Company Reveals Plans to Move Into Alcohol Business

Packaging and pills of different types of psychotropic medications. (Photo: Jaap Arriens/NurPhoto via AP)

South Korean pharmaceutical company Kyungnam Pharm is preparing to enter the alcohol industry as it pursues new growth areas outside its traditional health supplement business, Chosun Biz reported.

According to the Korean outlet, the company planned to add liquor import, export, distribution and sales operations to its articles of incorporation during a shareholder meeting earlier this week. The move is viewed as a necessary first step toward securing alcohol import and export licenses under South Korean law.

Kyungnam Pharm is best known for its long-running vitamin brand Lemona, which became a household name in South Korea during the 1980s.

The company said it has not yet decided what types of alcohol it plans to distribute or which international markets it may target.

“We are reviewing new business opportunities,” a company official told Chosun Biz, adding that licensing procedures would proceed in accordance with relevant laws.

The alcohol expansion announcement came just 10 days before Kyungnam Pharm unveiled plans for a 19.1 billion won (US$12.7 million) capital raise.

The company disclosed plans to issue 11 million new common shares through a shareholder-first rights offering structure, with SK Securities serving as underwriter. Kyungnam Pharm said proceeds will primarily support marketing and operating expenses.

Alongside alcohol, the company is also expanding into pet products, including pet food, supplies and eventually healthcare-related offerings.

The moves come after years of ownership changes and a complicated corporate restructuring history.

Founded in 1957, Kyungnam Pharm changed hands multiple times over the past two decades before diagnostic company Humasis acquired it in 2024 for approximately 48 billion won.

The company now sits within a layered ownership structure tied to private equity firm Stella PE and several affiliated holding entities. Industry observers cited by Chosun Biz noted that Kyungnam Pharm’s stock price has fallen nearly 60% over the past three years, prompting speculation that the new business initiatives could be aimed at reigniting investor interest.

Despite those concerns, Kyungnam Pharm recently reported improving financial performance.

First-quarter consolidated sales rose 23% year over year to 16.1 billion won, while operating profit climbed 257% to 400 million won. Lemona alone accounted for roughly 28% of total sales during the quarter.

The company currently distributes products through approximately 24,000 pharmacies, convenience stores and major retailers across South Korea.