Q&A with Hyundai’s Chang Hoon Lee

20 May 2019 2050 | Business & Trade Fairs

Chang Hoon Lee, managing director of Hyundai Agro, sits down with Khmer Times’ May Kunmakara to talk about the company’s operations in the Kingdom and its plans. South Korean firm Hyundai Agro in January started construction of a fruit processing factory in Kampong Speu province. In 2016, the company entered into a partnership with local mango producer Mao Legacy and will soon begin exporting Cambodian mango to the South Korean market.

Mr Lee: We decided to invest in mango because, just like rice, it is a very popular crop in Cambodia. The variety that we are working with, Keo Romeat, is excellent in terms of appearance and taste. We also decided to enter the mango industry because it was lacking a strong player. If we do it well, we will become a big player internationally in the mango and tropical fruit markets.

Hyundai is better known as a leader in heavy industry, but we are always looking to expand into new territory. In Cambodia, we decided to focus on agriculture and food. Mango is only the beginning. We will eventually export other tropical fruits as well.

KT: Tell us more about your project in Cambodia.

Mr Lee: First, we invested in a 260-hectare mango plantation in Kampong Speu in 2014. The farm, called ‘Arirang’, is the first mango plantation in the country developed by a Korean firm. Arirang is now the top mango plantation in Cambodia.

In 1997, Koreans started building mango plantations in the jungle, with many farmers following suit, turning Kampong Speu into a hub for mango farming.

When Koreans first started building these farms, locals were sceptical. At the time, no one thought mangoes could turn a profit. But after Koreans started to produce and sell mangoes profitably, many Cambodians started to visit Arirang to learn from them. Now, Kampong Speu has become an important place for mango farming.

This is the story Hyundai is using to market Cambodian mangoes overseas. Every product sells better if it has a story behind it, a story that has meaning for the consumer.

For four years, we developed the process to be used for growing mango, focusing on quality and safety, and strictly controlling the use of pesticides and fertilizers. If high standards are not met, the product won’t sell well in Korea and Japan. ‘If Hyundai is the producer, you can trust the product,’ this is our motto.

KT: How much are you producing a year?

Mr Lee: Our farm can produce 5,000 tonnes a year of Keo Romeat mangoes, but only about 2,000 tonnes will be exported.

KT: The Korean market has strict sanitary and phytosanitary requirements. How have you ensured that you meet them?

Mr Lee: Korea, Japan, China, Australia, and the United States all have really strict requirements when it comes to importing fruits. Foreign crops have the potential to adversely affect a country’s ecosystem, so governments take this issue very seriously.

Hyundai’s product processing centre was approved in April by Korean Authorities after they checked our factory and farm.

KT: When do you expect to send the first shipment?

Mr Lee: If everything goes as planned, we are expecting to ship the first container of mangoes in October. I would like for this to happen before Prime Minister Hun Sen and Korean President Moon Jae-in meet again in Bussan in October. If we can conclude the shipment before this summit, I would be very happy indeed and will celebrate by eating Cambodian mango. Fortunately, the Korean government is supporting us to make it happen.

Other than that, we already started exporting mango to Hong Kong and Europe. In April and May, we sent six containers to Hong Kong as a test. Hong Kong consumers are not familiar with Cambodian mangoes. They generally prefer Thai and Philippine mangoes. They believe Philippine mangoes are the best in the world.