Ilyang Pharmaceutical is mounting a fresh push into the Chinese market, reviving a business operation that had been stalled for over three years. The company announced on July 27 that it has completed its initial capital injection into its local subsidiary, formally setting in motion an investment plan totaling 80 million yuan (approximately 17.6 billion won). Simultaneously, Ilyang initiated its first direct export of finished units of its flagship energy tonic, Wonbi-D, to China.
The capital investment and product shipments mark the company’s first concrete operational steps since securing a final victory in a prolonged legal dispute with its former Chinese partner, Qingshan Industrial. The conflict originally stemmed from trademark ownership. To protect Wonbi-D’s status as a recognized "China Well-Known Trademark" against counterfeits, Ilyang had assigned the trademark to their joint venture. However, the Chinese partner subsequently halted dividend payments and refused to import raw materials, triggering a three-year legal battle that ultimately concluded in Ilyang's favor.
Two-Stage Investment to Establish Local Production Hub
Ilyang plans to deploy the 80 million yuan investment in two distinct phases. The initial stage involves a 45 million yuan cash injection dedicated to building local production infrastructure—including facility leasing, equipment purchasing and installation, and regulatory product registrations. The remaining 35 million yuan will be reinvested using revenue generated from local operations to fund production line expansions, research and development, and broader marketing initiatives.
The central hub for this expansion is the local subsidiary, Ilyang Pharmaceutical (Jilin) Co., Ltd. Operating through this entity, Ilyang will construct a manufacturing plant for health functional foods while transferring key production, sales, and development technologies. The company also aims to strengthen its market presence by increasing Chinese sales of finished goods alongside raw and auxiliary materials, anchored by Wonbi-D.
Secured Brand Rights and a 40.5 Billion Won Market Opportunity
The court victory firmly secured Wonbi-D’s trademark rights across China, enabling Ilyang to re-enter the market without legal uncertainties and significantly lowering brand promotion costs. Ilyang will initially distribute Wonbi-D as a general food product while expanding its retail channels, with plans to transition to local manufacturing over the medium to long term to ensure price competitiveness and supply stability.
Market conditions appear favorable for the brand's return. Tonghua Ilyang Health Products Co., Ltd., which previously produced Wonbi-D, recorded annual revenue of approximately 219.99 million yuan (around 40.5 billion won) in 2023. With China's market for health functional foods and pharmaceuticals continuing to expand alongside growing consumer trust in South Korean products, Ilyang aims to leverage Wonbi-D to rebuild its regional footprint and drive long-term global growth.
