Zenaxis (CEO Son Mi-kyung) announced on the 12th that it has made a seed investment in Youngone (CEO Lee Ki-hyung), an agricultural corporation that develops functional liquors and fermented products using traditional nuruk-based fermentation technology. Through this investment, Youngone will expand its business into the functional feed additive sector, securing a new growth engine.
Yeongwon has been developing functional makgeolli and premium distilled liquors based on its proprietary yeast and enzyme technologies. It has also garnered attention for establishing a convergence model for agro-food products utilizing local agricultural products. The new feed additive business represents an example of this fermentation technology expanding into the livestock sector.
The company developed a functional feed additive based on low-molecular-weight xylooligosaccharides (XOS) by fusing yeast complex enzymes and heat-stable xylanase. XOS is known to be a component that can help increase the growth of beneficial bacteria in the intestines of livestock, improve digestive efficiency, and contribute to increased productivity. Yeongwon explained that its characteristic is that it has secured stability so that its performance can be maintained even in high-temperature feed processing environments.
This product offers a multitude of benefits, including improved intestinal health, increased feed efficiency, and odor reduction. This is believed to be linked to the growing demand for alternative solutions in the livestock industry, where antibiotic use is restricted. The domestic feed additive market is estimated to be worth approximately KRW 1 trillion and is experiencing continued growth driven by the shift to eco-friendly products. In this market environment, Youngone is leveraging its technological competitiveness to expand into both domestic and international markets.
Currently, Youngwon has secured an initial market value of approximately 2 billion won. Over the next three years, it plans to expand its market share through participation in domestic and international exhibitions, collaborations with local agricultural and livestock cooperatives, and partnerships with government-supported projects. In the short term, Youngwon aims to secure distribution channels and increase brand awareness, while achieving annual sales of 30 billion won in the mid- to long-term.
The company is prioritizing Southeast Asia and Central and South America, regions with high livestock industry presence, as its overseas markets, and is preparing a market entry strategy through securing local partnerships and product certification.
Investment firm GenAxis, an accelerator that has invested in early-stage startups across various sectors, including bio, healthcare, AI, and agrifood, stated that this investment highlighted the potential for convergence between traditional fermentation technology and the livestock industry. A GenAxis representative stated, “Yeongwon is a rare example of a company that has demonstrated industrial scalability by coexisting with the local community based on traditional technology. We anticipate further growth in the future due to the increasing global demand for sustainable agricultural and livestock solutions and the ESG trend.”
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