Saengong seeks to expand into China

Saengong CEO Kim Ji-seon, left, and AKWG International CEO Andy Wong, pose after signing a memorandum of understanding, at the former’s headquarters in Seoul, Tuesday. Courtesy of Saengong

Saengong is seeking to expand into China with its household products, the Korean brand said Wednesday.

The company said Tuesday it signed a memorandum of understanding (MOU) for business cooperation with AKWG International, a Hong Kong-based brand management and distribution company.

Founded in 2006, AKWG is a Hong Kong-based distribution company that manages a portfolio of beauty and consumer brands in the Asia-Pacific region. AKWG has successfully introduced brands such as 111SKIN, Ariul, Hanskin, Mediheal and NYX to the Asia Pacific region.

Through the MOU, Saengong will actively collaborate with AKWG as a strategic partner for its household products in China.

The two companies will also work together to source various consumer products from Korea and distribute them through AKWG's network.

"AKWG will promote Saengong products to increase brand awareness and penetration in the local market, while Saengong will support AKWG in providing consistent, high-quality products and services," Saengong said.

Based on this MOU, the two companies will sign a definitive agreement this August to solidify their partnership and continue to work towards their common goals.

"This MOU agreement is significant as it marks the beginning of Saengong's entry into China," Saengong CEO Kim Ji-seon said. "With AKWG's local strengths, we will introduce our brand and products into China and further strengthen our presence through various collaborations."

Saengong, which exports products to more than 10 countries overseas, recently signed an agreement with Kazakhstani company Shin Line Group to expand its business in Kazakhstan, Kyrgyzstan, Uzbekistan and Russia. Shin Line Group is the biggest ice cream firm in Kazakhstan and fifth-largest in the Commonwealth of Independent States region.