Overcoming the 'Post-Corona' Food Crisis... LG Targets Triple Cropping in Southeast Asia

[Asia Economy Reporter Park Soyeon] Farm Hannong, a subsidiary of LG Chem, is increasing its Southeast Asian subsidiaries to proactively prepare for the food crisis in the 'post-COVID-19' era. Utilizing the global network of its parent company LG Chem, it plans to aggressively expand its business while also serving as a corporate promoter for the LG Group through social contribution projects such as local agricultural technology consulting in Southeast Asia.

According to industry sources on the 20th, Farm Hannong established a local subsidiary in Jakarta, Indonesia, in the first half of this year. This is the third local subsidiary in Southeast Asia, following Chiang Mai, Thailand, and Kuala Lumpur, Malaysia. Outside Southeast Asia, it has overseas subsidiaries in New Jersey, USA, and Heilongjiang Province, China.

Farm Hannong is a green bio company that produces crop protection products (pesticides), seeds, and fertilizers. It is recognized as a company realizing sustainable agriculture with next-generation product technologies such as new material crop protection agents, functional seeds, and coated compound fertilizers. The establishment of the Indonesian subsidiary was reportedly driven by high interest from local government officials in products developed by Farm Hannong, such as the non-selective herbicide 'Terado.'

As global efforts to solve the global food crisis are underway following COVID-19, Farm Hannong plans to actively expand its global business. Following the establishment of the Indonesian subsidiary, it plans to expand its bases in Southeast Asia, including Vietnam and Myanmar.

Farm Hannong will also carry out social contribution projects such as agricultural technology transfer and technical consulting to farmers in cooperation with local government agencies in Southeast Asia. In Thailand, it plans to conduct research on cultivating key crops to secure food resources after COVID-19.

Through this, Farm Hannong has set a mid-to-long-term goal of securing more than half of its sales through overseas business. In particular, it plans to expand its local network through cooperation with its parent company LG Chem, which has local subsidiaries in Southeast Asia. Meanwhile, Farm Hannong recorded sales of 590.2 billion KRW last year and aims for 600 billion KRW in sales this year.

A Farm Hannong official said, "Southeast Asia is a huge agricultural market where triple cropping is possible, and since many of our products are exported to this region, we plan to actively expand our business."

This content was produced with the assistance of AI translation services.