Korea Small Cap Gem #31: Daesang - A Consistently Profitable F&B Company Run by the Lim Sisters

• Daesang is one of the leading F&B companies in Korea. It is especially well known for its sauces, kimchi, and miwon (MSG) food ingredients.

• Daesang has relatively attractive valuation multiples. It is trading at P/E of 5.6x, P/B of 0.46x, and EV/EBIT of 6.4x in 2025. Daesang consistently generates positive net profit.

• Daesang Holdings (084690 KS) is the largest shareholder of Daesang Corp with a 39.3% stake. Two sisters (Lim Sang-Min and Lim Se-Ryeong) are the two largest shareholders of Daesang Holdings.

Company Background

Daesang Corporation, established in 1956, is a leading South Korean company specializing in the production and distribution of a diverse range of food products. It is especially well known for its kimchi and various kinds of sauces and ingredients. In the 1950s, the company's initial focus was on producing food additives, particularly monosodium glutamate (MSG), marketed under the brand name "Miwon." By 1960, leveraging its proprietary fermentation technology, Daesang commenced large-scale production of MSG, swiftly becoming the dominant supplier in Korea. The brand's influence was so profound that "miwon" has become synonymous with MSG in Korea.

Throughout the 1960s and 1970s, Daesang diversified its product range and expanded its operations. In 1964, the company ventured into the starch and sweetener business, marking its entry into the corn wet milling sector. The 1970s witnessed Daesang's expansion into international markets, beginning with the establishment of its first overseas venture in Indonesia in 1973. Over the subsequent decades, the company broadened its global presence with subsidiaries and joint ventures in Japan, Hong Kong, the United States, China, and Vietnam.

The late 1990s and early 2000s were characterized by significant restructuring, with Daesang divesting from non-core businesses to concentrate on its core competencies in food products and corn wet milling.

Daesang Group has 42 companies, including holding company Daesang Holdings. Daesang operates brands such as Cheongjeongwon, which handles soy sauce and convenience foods, and Jongga, which manufactures kimchi.

Daesang Corporation operates through two primary business segments: the Food Business and the Ingredient Business.