Dongwon Chamchi (Tuna)

The history of the Dongwon group and its especially successful Dongwon Chamchi brand starts from one individual: Kim Jae Cheol. Following graduation from college, Kim went straight into the deep-sea fishing industry, climbing to the rank of captain by age 28, and well-known for his ability to catch tuna. 

He was even nicknamed the “Jang Bogo of the 21st century.” 

In April of 1969, Kim became the CEO of his own business, having both superb fish catching skills and leadership. 

He slowly made a name for the company, pushing through the 1st Oil Crisis by making an investment in a larger fishing boat when others were trying to cut corners and save money. 

This ship produced hefty returns, allowing the company to catch more fish for more profits. 

The biggest problem, however, was that the activities involved in the deep-sea fishing industry were low-wage and labor-intensive, with fish catching and exporting ultimately limited economically. 

For that reason, Dongwon would expand from a simply fish catching to a value added food processing company.

The inspiration to move beyond deep-sea fishing alone struck when Kim was studying for an AMP at Harvard Business School in the US. 

In class, he heard that when a country’s per capita income exceeds 2000 dollars, people begin to take an interest in the conditions of their living environment and food habits because they have the luxury to pursue quality and convenience once fundamental needs are met. 

One such example of this was the consumption of canned tuna, which is low-fat and high-protein and has the benefits of both meat and fish combined. 

Kim realized that Korea would soon be entering into a phase of changed lifestyle and food culture, and upon his return home, he established a production process and manufacturing factory for canned tuna. 

From sea to store, Dongwon was now involved in not only catching fish, but processing it as a canned product for public consumption.

To create the right conditions for the reception of canned tuna in Korea, Dongwon went through a series of steps. 

The first was to increase awareness of “tuna” and the concept of “canned tuna” to latent customers who were only familiar with pacific saury and mackerel. 

This was accomplished through the use of advertising. Next, the brand itself was promoted to the general public with a market rotation system, where salespersons would display and sell Dongwon Chamchi canned tuna in markets all across the country. 

Food sampling events were frequently set up near recreational spaces, as well, easily attracting the attention of passersby. As Dongwon Chamchi gained mass popularity, “canned tuna” became its own food category and was often sought out as a side dish and for vacations, and became a necessity for individuals living alone or away from home.

Dongwon Chamchi dominated the market, but was not lacking competitors. In 1989, for instance, Sajo Industries boasted a 31% market share following the release of its “Rohai tuna” series. 

In response, Dongwon emphasized their uniqueness with ads and pursued brand diversification. 

Again, in 1993, Ottogi pushed forward with tuna products containing high quality yellowfin tuna. 

Dongwon likewise launched new products and modified their brand, freshening up their image with positive results. 

In the end, Dongwon solidified their position as number one and is still a powerhouse in the deep-sea fishing industry, maintaining a 70% or more market share. 

In 2002, Dongwon Chamchi embraced a renovated image as a producer of “health food,” making tuna’s inherent qualities (omega 3 fat, high protein, low calorie) the selling point of their products. Since then, they have also continued to diversify. 

Despite Dongwon’s clear success, the company faces pressing obstacles in the near future. 

Among them are growing concerns with the sustainable development of the tuna market (especially with rapid resource depletion), certification from NGOs like the Marine Stewardship Council or the ‘friendly tuna can’ stamp from GreenPeace, and finally, the fact that both local and global demand for adhering to sustainability standards will only become stronger with time.