South Korean pharma firm plots pivot into liquor

From Suntory to BrewDog, a flurry of booze brands have leapt into the health sector in a bid to boost revenue. Now, in an uno-reverse, Korean pharmaceutical firm Kyung Nam Pharm, has reportedly set its sights on the spirits market. 

In recent times, a slew of alcohol companies, ranging from Japanese drinks giant Suntory to Scottish brewery BrewDog, have pivoted into the pharmaceutical market, in order to steel finances amid a global alcohol consumption slowdown. Expanding from medicine to alcohol is less common, but that’s exactly what Kyung Nam Pharm has pledged to do.

Established in 1957, Kyung Nam Pharm Co., Ltd specialises in over-the-counter medication, dietary supplements and functional foods. It distributes to around 24,000 pharmacies and retail outlets across Korea, with flagship products including Vitamin C powder, Lemona, as well as athlete’s foot treatment and throat-soothing lozenges. 

But, earlier this month, the 69-year-old company released a blueprint outlining a strategy to set up an alcohol business separate from its core operations – South Korean outlet Chozun Biz has reported.

Liquor distribution talks

According to the publication, the company, which is headquartered in Gyeongsangnam-Do, instigated a shareholders meeting on 26 May to discuss adding a “liquor import and export business” and “liquor distribution and sales business” to its corporate charter. 

The language used here is important. In Korea, to obtain a liquor import and export license, the specific terminology “liquor import and export” must be explicitly relayed in the articles of incorporation. 

The company first announced its future foray into the liquor market on 11 May. It is not yet clear which types of alcohol it plans to distribute.

Why make the move into liquor?

Just 10 days after unveiling the new strategy, the firm announced plans to raise around 19 billion won. Liquor aside, it also plans to broaden its business into the pet food sector.

But why is the company turning to alcohol in 2026? Well, with its share prices dropping nearly 60% over the past three years according to Chozun Biz, it could be a move aimed at boosting stock.

As it plans to secure millions of won in funding, expanding its footprint to encompass alcohol and pet ventures is also likely to be a key step in attracting new investments.

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