[BizLeader] Lee Myung-jae, CEO of Inbio, "Aiming to Become a Global Eco-friendly Crop Protection Company"

Lee Myung-jae, CEO of InBio

[Asia Economy Reporter Yoo Hyun-seok] "We will grow into a global eco-friendly crop protection company beyond the domestic market," said Lee Myung-jae, CEO of Inbio, in an interview with Asia Economy on the 24th.

Inbio is a specialized company that develops and manufactures eco-friendly crop protection products such as fungicides and insecticides, established in 1997. Over the past decade, it has developed new products accounting for 10% of all domestic crop protection products. Last year, it recorded sales of 33.7 billion KRW and an operating profit of 4.4 billion KRW. It is scheduled to be listed on the KOSDAQ market next month.

CEO Lee emphasized Inbio's growth rate. While the domestic crop protection market grew at an annual average rate of 1% from 2005 to last year under challenging conditions, Inbio achieved a growth rate of 11%. He explained, "Domestic companies are now only trying to maintain stable sales, but Inbio produces various products based on generic raw materials whose patents have expired," adding, "We supply products to farmers at affordable prices to generate sales."

The reason Inbio focuses on generic crop protection products is due to their high cost competitiveness and the ability to launch various products through combinations of active ingredients. He emphasized, "The price of generics is only about 40% of the original, so they have cost competitiveness," and added, "Since efficacy verification is complete, combining several raw materials into one product can result in crop protection products with diverse effects."

In addition to generic crop protection products, Inbio also produces eco-friendly crop protection products. It is the only company in Korea to have a product called 'Seokhwa-hwang' certified with green technology. He explained, "Seokhwa-hwang was previously registered only for apples, but now the applicable crops have increased to 17-18, so we expect significant sales expansion," adding, "We are also developing additional products beyond the existing ones."

Eco-friendly crop protection products currently account for less than 10% of total sales. However, the company plans to increase this share to 25-30% by 2022. CEO Lee said, "All domestic competitors only make chemical products, but we produce eco-friendly products as well," adding, "Inbio is the only company in Korea producing eco-friendly products, so there is no competition, and growth potential is high."

Inbio is currently targeting the global market. It has entered markets in Southeast Asia, South America, and China. He emphasized, "We have established trading partners in China and signed an export contract with Bolivia this year," adding, "Currently, demand is growing in developing countries, so we are focusing there, and later we plan to enter advanced markets such as the U.S. and Europe through eco-friendly crop protection products."

CEO Lee explained that performance growth can continue. This is because the launch of generic products is ongoing and global exports are steadily increasing. He said, "Agricultural companies tend to have seasonal sales concentrated in the first quarter, but as exports expand, we have a structure that can generate profits every quarter," adding, "Exports, which were 900 million KRW in 2019, are expected to increase eightfold by 2022." He further added, "As more generic new products are launched, the profit structure improves, so we plan to raise the operating profit margin to over 30% in 2022."

Finally, CEO Lee once again emphasized Inbio's growth potential. Unlike other companies that remain in existing markets, Inbio is experiencing rapid growth like a venture company in the agricultural sector through various products and market strategies. He said, "I want to be the best among domestic companies in terms of growth and sales," adding, "I want to be a company with unlimited growth potential, different from existing mature companies." He pledged, "As the company develops, we will become a consumer- and shareholder-friendly company that returns profits to farmers and shareholders."

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