SEOUL, KOREA - LG Household & HealthCare said on October 16 that it would acquire the beverage unit of Yungjin Pharm Co. at 14.1 billion won.

The takeover process will be proceeded in ways that LG Household buys up Yungjin's intellectual properties including trademarks at 7.0 billion won while its subsidiary Haitai Beverage absorbs the remaining assets including production facilities and inventories at 7.1 billion won.

 

Yungjin Pharm has had long-lasting drink brands such as Yungjin Glonsan Vermont, Vita-C Gold, Red Ginseng Extract, and Q-Ten.

 

An official of LG Household & HealthCare explained that the latest acquisition was intended to strengthen its functional (meaning making health claims or other special properties) drink division in response to the fast-growing functional drink market. The size of Korea's functional beverage market is estimated at 800 billion won a year.