Pulmuone, a South Korean food company, is selling its Chinese subsidiary in Chongqing, marking its first divestiture of a local unit in China.
Sources close to the matter revealed that Pulmuone is in the process of selling its entire stake in Pumeiduo (China) Co Ltd, based in Chongqing, to a Chinese firm. The deal is expected to conclude by May, with the sale price estimated at around 10 billion won ($7.3 million).
Pulmuone expanded into China in 2010, establishing subsidiaries in Beijing and Shanghai, and later launched its Chongqing unit in 2013. The Beijing and Shanghai units focus on manufacturing and selling fresh and frozen foods, while the Chongqing operation has specialized in health supplements, skincare products, and eco-friendly organic stores.
For the first three quarters of 2024, Pulmuone’s Chinese subsidiaries generated 64 billion won in sales, slightly up from the previous year. Although the business has reported occasional profits, it remains unprofitable overall.
A company spokesperson stated that the decision to sell the Chongqing unit was driven by changes in the global market environment. Pulmuone plans to refine its domestic business strategy before looking to expand further internationally.
