Dongbu Farm Hannong to leave crop business

Dongbu Farm Hannong, Korea’s major agricultural product manufacturer, confirmed yesterday it is pulling out from the crop-cultivating business after heavy protests from local farmers.

The affiliate of Dongbu Group said yesterday that it will sell off its 40,000-square-meter (0.91-acre) greenhouse in Nonsan, South Chungcheong, following the sale of Hwaong greenhouse facilities in Hwaseong, Gyeonggi. In addition, the company said that it will not pursue business in Saemangeum, Gunsan, North Jeolla.

In 2010, it was selected to build a greenhouse and distribution center on reclaimed land in Hwaseong, Gyeonggi Province.

This means that Dongbu Farm Hannong will not engage in any crop-producing businesses it has undertaken since 2010.

The company, which started in 1953 as Korea Agriculturals, has been leading the nation’s agriculture businesses as a major producer of crop protection products, fertilizers and animal health care after acquiring Monsanto Korea in 2012.

Dongbu Farm Hannong initially said it would finalize the sale of its 150,000-square-meter greenhouse complexes in Hwaseong, Asia’s largest. The company last year signed a deal to sell its stake in the facility with Hwaseong Green Farm, which is comprised of farming groups in the region, for 35 billion won ($32.7 million). Hwaseong Green Farm said it is planning to pay 15 billion won in advance with the rest in six-year installments.

BY JOO KYUNG-DON [kjoo@joongang.co.kr]