South Korea’s confectionary giant Orion Group is accelerating efforts to become a comprehensive food provider by joining hands with a U.S.-based health supplement company well known for its vitamins.

In a telephone interview with Maeil Business Newspaper on Friday, Hur Inn-chul, chief executive and vice chairman of Orion Holdings, said that the conglomerate plans to attach its brand name to a health supplement product produced in the U.S. in the form of original equipment manufacturing (OEM) and market them in Korea and China. The group is currently in the final stage of signing a license contract with the U.S. food company, he added without naming the U.S partner.

Hur, who has been spearheading Orion Holdings that was recently split from the group, is in charge of promoting new businesses. Orion Group was split into two entities - Orion Holdings and Orion Corp. - with the holding company being responsible for investing in new businesses and managing affiliates while the other in charge of food production and sales. The move was made as part of efforts to more efficiently invest in core businesses to secure foundation for responsible management system and to increase transparency in corporate governance.

In addition to the business tie-up with the U.S. health supplement company, Orion Holdings plans to accelerate its beverage business involving magma seawater from Jeju Island as well as its home meal replacement business by managing a joint manufacturing facility with Nonghyup.

Orion Holdings plans to invest 300 billion won ($267.3 million) over the next five years to export Jeju Yongamsu to other countries. It also aims to introduce a mixed beverage product next year and promote an additional business involving natural mineral created in the process of removing salt from lava seawater. All products will be exported and sold in China and other Southeast Asian countries through its global sales network. China’s beverage industry is estimated to be worth 96 trillion won while its functional beverage industry 13 trillion won.

Meanwhile, Hur projected that sales that have dropped sharply in China will turn around by July. Orion - a household Korean snack name famous for its signature chocolate pie - along with other Korean brands have been hit by boycott following Korea’s decision to host U.S. Terminal High Altitude Area Defense (THAAD) antimissile system.

By Jeon Ji-hyun and Lee Hee-soo

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]