Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Maeil Dairies CEO sees opportunities amid challenges posed by nation's low birthrate
Maeil Dairies CEO Kim Seon-hee delivers a speech during the 47th Korea Chamber of Commerce and Industry (KCCI) Jeju Forum at The Shilla Jeju, Thursday. Courtesy of KCCI
By Park Jae-hyuk
Dairy producer capitalizes on aging population
SEOGWIPO, Jeju Island — Korea, which has the world's lowest birthrate, faces major challenges for its dairy industry. However, the country's aging population is also creating new opportunities, according to the first female CEO in the nation’s dairy industry, Thursday.
Maeil Dairies CEO Kim Seon-hee, who has led the company since 2014, said that her company has overcome the current crisis by convincing older consumers to increase their protein intake.
“Over a million babies were born in 1969 when Maeil Dairies started its business,” she said on the second day of the 47th Korea Chamber of Commerce and Industry Jeju Forum.
“In 2023, the number of newborn babies fell to 230,000, eliminating 80 percent of the market.”
Amid the rapid decline of the dairy firm’s main consumer base here, Kim previously tried to export her company’s products to China, which has a population 30 times larger and showed a growing demand for premium powdered milk in the mid-2010s.
But Beijing's protectionist policies led the Korean Dairy producer to reduce its dependence on China and begin focusing on the increase in people aged over 65 here.
“One out of five Koreans are now aged 65 or older,” she said. “For the survival of our dry milk business, we have been targeting women in their 50s, who experience a reduction in their skeletal muscle mass due to insufficient protein intake.”
The CEO also said that Maeil Dairies has diversified its business portfolio by launching food and beverage franchises and developing various kinds of vegan milk to satisfy the interests of young adults.
In addition, the company’s milk delivery personnel have been key in increasing safety for older adults living alone, who have now emerged as their main customers.
“Prime Minister Han Duck-soo recently delivered milk in person and called me to say thanks for the program,” Kim said.
The CEO, however, emphasized that her company has not neglected efforts regarding a rebound in Korea's birthrate.
“We have encouraged male employees to take paternal leave as well,” she said. “Our employees can receive an up to 20 million won ($15,000) bonus, if they have three babies. We also provide unlimited financial support for employees with fertility issues who are trying to have a child.”