28th Agricultural and Life Industry Special Lecture ‘The Future of Green Bio Made by FarmHannong’ (FarmHannong CEO Mu-yong Kim)

 CALS offers special lectures on the agricultural and life industry as a student competency development program. The 28th special lecture was given by Mu-yong Kim a CEO of FarmHannong. Kim tried to show students a new perspective on the career path, saying, “It would be a success if I could take an hour and a half on a Friday afternoon in a long life and give you a new perspective on the world.” Let’s find out what content was delivered to students through the special lecture.

CEO’s Career Path
Kim joined LG Chem in 1993 after receiving a master's degree in pharmacy from Seoul National University and a doctorate in medicinal chemistry from the University of Texas. Afterwards, in 2017, he was in charge of LG Chem's life sciences company Bio, and served as the head of the specialty drug company and in charge of overseas sales. He was promoted to executive director in January 2022, and has been serving as CEO of FarmHannong since the end of 2022. In the meantime he went through the process of moving from red bio to green bio.


LG
Kim first introduced LG Group. LG started as Lucky Group in 1947. The average lifespan of a company these days is about 10 years, but LG has been steadily succeeding for 75 years. Kim said that the secret lies in corporate culture of Jeong-Do management and the meaning of LG's existence which is what value it will provide to customers. The group is divided into chem, electronics and communications/services, and among these, FarmHannong belongs to LG Chem.

LG Chem
Kim then said that LG Chem is a company that values science and has a vision to lead the world through science. LG Chem ranks third in global chemical company brand value, and it consists of petrochemicals, advanced materials, and life sciences. LG Chem's subsidiaries include LG Energy Solution and FarmHannong, of which LG Energy Solution is the second largest company in Korea's market capitalization.

FarmHannong
As such, FarmHannong is a 100% subsidiary of LG Chem. FarmHannong is in charge of green bio and has sales of about KRW 800 billion with 850 employees. In the green bio sector, it is ranked first in Korea and is engaged in the business of crop protection agents, seeds, and fertilizers. The crop protection business focuses on new substances, the seed business focuses on vegetables, and the fertilizer business focuses on slow-acting properties. FarmHannong's vision is to enrich the lives of mankind, with the goal of creating a leisurely and prosperous life for customers. The business is located in Yeouido, and there are two research centers and five factories in Nonsan and Anseong.

FarmHannong's organization is centered around the CEO and consists of the Crop Protection Business Team, Seed Business Team, Fertilizer Business Team, Overseas Business Team, and staff. The crop protection business is the largest among green bio products in Korea, with sales of approximately KRW 350 billion, and includes high value-added products, original products, new material products, and eco-friendly products. The seed business is the second largest in the country and is developing and distributing better seeds based on genetic and biotechnology. The fertilizer business focuses on technology such as slow-release fertilizers, and the overseas business focuses on new materials. Last year, it generated sales of KRW 120 billion, and this year, it is generating sales of KRW 200 billion.

Future
Next, we will find out what kind of future FarmHannong dreams of and what strategies it has developed.

1. Global target market: So far, FarmHannong has targeted the domestic market and farmers. The next goal is to go beyond Asia and enter agriculturally advanced countries such as the United States, Brazil, and Australia. The most important product, ‘Terrad’or’, was launched globally and is exceeding 95 billion won in sales this year, following sales of 30 billion won in 2020 and 50 billion won last year. This shows sales exceeding the target of KRW 70 billion.

2. Open Innovation: Kim also emphasized the importance of collaborating with various companies that are good at specific fields, saying that FarmHannong cannot do well alone. Currently, FarmHannong is collaborating with many companies around the world in development and sales, and Digital Farm is also working with U+ and CNS, and distribution is in connection with Wadiz.

3. Eco-friendly: FarmHannong’s industries include pesticides, fertilizers, and seeds. There is a problem that when fertilizer is applied, it flows beyond the field, and if the fertilizer is washed away by rain, it has to be applied again. So, FarmHannong created a technology that can reduce pollution and fertilizer usage. There is also a problem that plastic is contained in fertilizer so FarmHannong made plastic be decomposed by sunlight. However, the plastic still does not decompose in the ground, so bioplastics that decompose even in the soil are being developed. In this way, FarmHannong created an eco-friendly and convenient fertilizer. This is the eco-friendly customer value that FarmHannong believes in.

4. Employee participation: Employees must want to work. It is important to do it because you like it, not because you are told to do it. An example is incentives. There are two types of incentives: those given to all employees and those given individually. Welfare benefits vary, including health checkups for you and your spouse, medical expenses, and college tuition for your children. Kim said, “Things to consider when choosing a job include where to go, what field to go, how well you fit with the recruiting agency, the balance between salary and vision, and your own capabilities,” and recommended “FarmHannong, a company that is somewhat stable and has good opportunities.” Kim then concluded the lecture by saying, “Because it is a green bio company that LG Group is trying to grow, it could be a good option.”