Youngwon, a Korean agricultural corporation that has been developing functional alcoholic beverages and fermentation agents based on traditional nuruk (Korean fermentation starter) fermentation technology, announced that it has attracted seed investment from Genaxis. The investment amount was not disclosed. Through this investment, Youngwon plans to expand its business into the new field of functional feed additives, securing a new growth engine.

Youngwon has garnered industry attention by introducing functional makgeolli (Korean rice wine) and premium distilled spirits using unique yeast and enzyme technology extracted from traditional nuruk. A notable characteristic is that the company has not simply reinterpreted traditional alcoholic beverages in a modern way, but has also created an agri-food convergence model that enhances added value by utilizing local agricultural products as raw materials.

The feed additive business, now actively being pursued, is an example of expanding this fermentation technology to the livestock sector. Youngwon has developed a functional feed additive based on low-molecular xylooligosaccharide (XOS) by combining nuruk complex enzymes and heat-resistant xylanase. XOS is known to promote the proliferation of beneficial bacteria in the intestines and improve livestock digestive efficiency, thereby enhancing productivity. Youngwon has differentiated its product by applying its proprietary technology to ensure stable use even in high-temperature feed processing environments.

The newly introduced product is not limited to a single function. It offers multiple benefits, including improving livestock gut health, enhancing feed efficiency, and reducing the odor of livestock excrement, thus simultaneously solving farmers’ productivity and environmental problems. This also aligns with the needs of the livestock industry, which is seeking alternative solutions due to recent antibiotic use restrictions.

The domestic feed additive market is estimated to be worth about USD 726 million (1 trillion KRW) and continues to grow annually, driven by the demand for antibiotic alternatives and the shift towards eco-friendly livestock farming. The global market is also expanding rapidly, indicating that Youngwon’s technology has competitiveness not only domestically but also overseas.

Youngwon has already secured an initial market of USD 1.45 million (2 billion KRW). Over the next three years, the company plans to actively expand its market share by participating in domestic and international exhibitions, collaborating with local livestock cooperatives and agricultural cooperatives, and linking with government support projects. In the short term, it will focus on establishing distribution networks and enhancing product awareness, with a mid-to-long-term goal of achieving annual sales of USD 21.78 million (30 billion KRW).

The company is also eyeing overseas market expansion. It plans to prioritize Southeast Asian and Central/South American countries where the livestock industry is well-developed, and secure global market references through collaboration with local partners. To this end, Youngwon is proactively preparing for product performance verification and regulatory approval processes.

Genaxis’s investment goes beyond simple portfolio diversification; it highlights the potential for the convergence of traditional fermentation technology with the agri-food and livestock industries to succeed in the global market. Genaxis stated, “Youngwon is a rare startup that encompasses tradition and science, along with regional coexistence,” and added, “Based on its experience in solidifying its position in the traditional alcoholic beverage market, it will demonstrate global competitiveness in the livestock sector as well.” They further commented, “Sustainable agri-food and livestock solutions align with global ESG trends, and we expect Youngwon’s growth to accelerate even further.”