KB Investment Makes Additional 10 Billion Won Investment in Fruit IP Company

H&B Asia Holds 58 Fruit IPs
"Mutual Growth for Farmers' Income and Regional Economy"

KB Financial Group is making a large-scale investment in the domestic fruit industry, aiming for mutual growth with local farms. The goal is to implement a “coexistence investment model” that goes beyond simple profit-seeking to foster the ecosystem of farms and regional industries.

H&B Asia's Yanggu Direct-Management Apple Farm. H&B Asia

On November 10, KB Investment announced that it had invested 10 billion won in H&B Asia, an overseas fruit intellectual property (IP) company. Including previous investments made by KB Financial Group affiliates, the group has now secured the second-largest stake in H&B Asia, following founder and CEO Kim Heejung.

H&B Asia is the only company in Korea capable of exclusively securing global new variety fruit IPs. These new varieties, often called “club varieties,” allow IP holders to exclusively control cultivation and distribution rights through variety protection rights. Examples of such club varieties include Zespri International’s “Zespri Kiwi” from New Zealand and IFG’s “Black Sapphire Grapes” from the United States. These varieties are not only highly profitable but also boast superior sweetness and texture compared to traditional varieties. They are also more adaptable to climate change and resistant to pests and diseases, resulting in higher cultivation efficiency.

Currently, H&B Asia owns 58 fruit IPs, including the “Envy Apple,” which is enjoying sensational popularity across Asia. Premium fruits harvested from H&B Asia’s directly managed farms and partner farms are distributed through various on- and offline channels, including major supermarkets and department stores such as Costco and Emart, as well as e-commerce platforms like Coupang and Market Kurly.

CEO Kim is a former first country manager of Zespri, a New Zealand kiwi company, in Korea. Appointed as the sole country manager at the age of 29, she increased the company’s sales from 2 billion won to 60 billion won over 10 years. Believing that the future of Korean fruit farming lies in IP, she launched her own business. She determined that cultivating patented new varieties is essential for farms to protect fruit prices and maintain quality. CEO Kim stated, “This investment has laid the foundation for expanding the fruit sector into an industry that combines capital and technology. As the global fruit industry is rapidly shifting toward club varieties, we will strive to ensure that Korean fruits are recognized not only in Asia but also in the global market.”

KB Investment’s decision to invest in H&B Asia is aimed at supporting the growth of innovative companies in agriculture through large-scale capital investment, ultimately establishing a virtuous cycle that increases local farmers’ incomes and revitalizes regional economies. Yoon Beomryeol, CEO of KB Investment, explained, “By cultivating patented new varieties, we aim to increase the income of domestic fruit farmers and provide delicious fruit to consumers’ tables.” By collaborating with contracted farms nationwide and integrating the entire process of cultivation, purchasing, and distribution, H&B Asia enables farms to secure stable purchase prices while the company stably produces high-quality fruit.

The company also highly evaluated the potential for agriculture to evolve beyond a primary industry into a high value-added IP industry through H&B Asia’s revenue model. By building a stable, long-term profit structure based on variety protection IP, it is possible to achieve mutually beneficial cooperation between domestic farms and companies. A KB Investment official noted, “In advanced agricultural countries such as the United States, New Zealand, and China, the club variety-based agricultural model is already spreading rapidly. Especially as climate change lowers the productivity of existing varieties, club varieties are proving to be an effective alternative for improving both productivity and profitability in Korea’s current agricultural landscape.”