[Cheongdam Corporate Building of Dongkook Pharmaceutical] ‘ESG Management’, 1 Trillion Won Sales by 2025

Dongkook Pharmaceutical, which has achieved annual sales of 660 billion won, accelerates ESG (Environmental, Social and Governance) management.

The company shall identify the ESG status by each of environment, society, and governance sectors, prepare the foundation for sustainable future management, and disclose information transparently and accurately.

Dongkook Pharmaceutical started an energy efficiency project with Veolia, a French environmental company, from 2021, and completed a waste biogas recycling system in July last year, replacing 10% of LNG consumption with biogas.

Based on the performance of carbon emission reduction and the wastewater treatment plant optimization project, it also expects to obtain ISO 14001 certification, which is an international standard.

The company established a dedicated safety and health management department directly under the CEO to strengthen the safety organization, and its compliance was recognized in the ‘ISO 37001’ renewal review, leading to recertification.

The company plans to disclose related information on its website or the Korea Institute of Corporate Governance and Sustainability.

In the midst of this development, Dongkook Pharmaceutical opened the era of Cheongdam-dong. A new corporate building was built on the site in Cheongdam-dong, Gangnam-gu, purchased for 40 billion won in 2018, and the company moved in this building in March last year.

The building has a total area of 9,314㎡ (land area of 1,161㎡) and 16 floors above ground with 4 floors below ground. Over 250 employees are currently working at the headquarters in this new building, and affiliates such as Dongkook Life Science are using the old corporate building (Daechi-dong, Gangnam-gu).

The relocation of the corporate building was possible thanks to Dongkook Pharmaceutical's continuous success in performance. The company achieved steep top-line growth with an average annual sales growth of 11.8%.

Cumulative sales on a consolidated basis for the third quarter of last year were 495.2 billion won and operating profit was 55.2 billion won. Compared to the previous year, these figures represent increase by 11.6% and 17.7%, respectively. The industry estimates that Dongkook’s sales will be 666 billion won and operating profit 80 billion won if the fourth quarter figures are added.

Dongkook Pharmaceutical aims to achieve 1 trillion won in sales by 2025 through the annual growth rate of 14.5%. It is continuing new investments such as new technology development and factory expansion.

The OTC division is strengthening its brand line-up in addition to its mega-brand products, and the ETC division is expanding its sales channels and market share by launching new products.

The growth in sales of the healthcare division, particularly the ‘Centellian 24’ brand, has also contributed. Diversification of the total healthcare business, including cosmetics, showed a growth of 11.5%, playing a crucial role in the highest performance in the first half of last year.

An official from Dongkuk Pharmaceutical said, "The four divisions, OTC, ETC, Healthcare, and Overseas, are growing evenly and generating stable profits. We plan to secure competitiveness in new product development and mass production through continuous investment in R&D facilities and increase domestic and overseas market shares.”

[WIKI KOREA=Cho Eun, Reporter]