Harim: The Rise of a Poultry Industry Giant

Harim illustrates how strategic integration and branding can transform a poultry business into a market leader.

### The Growth of Harim: A Poultry Success Story
Harim, ranked **27th in the business world**, was founded by Kim Hong-guk in 1978 in Iksan, North Jeolla Province. Despite early success, Kim's poultry farm struggled during the livestock crisis, leading to its **closure and a period of debt repayment**. The company's challenges were similar to those faced by poultry farms globally, but a unique system in the U.S. has successfully stabilized the industry by **supplying feed and chicks without upfront costs**.

### The Vertical Integration Model in Poultry Industry
The vertical integration model involves a single company managing feed, poultry farming, slaughtering, and distribution, **reducing intermediaries and stabilizing prices**. Tyson Foods' success in the U.S. during the 1960s and Harim's expansion in South Korea in the 1990s, driven by **rising chicken demand**, exemplify this model. Harim's partnership with Cobb-Vantress to import **high-quality chicks** further strengthens the significance of integrated companies in the poultry industry.

### Harim's Growth and Impact on the Chicken Industry
Harim's contract farms increased from 16 in 1986 to over **600 by 2002**, establishing a reputation for **clean and reliable chickens**. The company's focus on brand image, including the **first KS mark certification** for livestock products in 1995, and packaging chicken with a **domestic origin label**, helped build the Harim Chicken brand. The government's mandate for chicken packaging in 2006 and Harim's strategic product diversification, including nuggets and Yonggari chicken, further **solidified their dominance in the market**.

### Harim's Strategic Growth in the Poultry and Pig Industry
Harim increased profits by selling chicken parts separately and developed **canned breast meat** to address excess supply. The company's success in the poultry industry led to acquisitions in pig farming and the establishment of a sales channel through **NS Home Shopping**. Despite facing a major setback with the burning of their Iksan processing plant, Harim received community support and quickly adapted by utilizing their Sangju factory and aligning with other operations to **maintain production**.

### Harim's Journey: From Destruction to Success
Harim faced complete destruction but successfully restarted the Ik-sang factory after a year, thanks to its **prior achievements**. The company's competitive edge in domestic chicken production was driven by **gathering farmers**, implementing **vertical integration**, and establishing a **strong distribution network**. However, as Harim grew, dissatisfaction among affiliated farmers increased, leading to tensions over **profit sharing** and culminating in Chairman Kim Won-guk's controversial **2.6 billion won purchase of a Napoleon hat** in 2014.

### Harim's Transformation and Expansion
Harim, under Chairman Kim Eun-guk, became a **dominant force** in Korea's chicken and pork industries by 2014. The company's acquisition of Pan Ocean for **1.08 trillion won** was met with skepticism, but Chairman Kim's vision for **synergy with Harim's other businesses** proved successful. The succession plan for Harim's leadership, involving the transfer of power to Kim's eldest son through the company Olpum, is set to play a **significant role in the group's future growth and influence**.

### The Rise of Harim: From Poultry Farm to Industry Leader
* 🐔 In the summer heat, many indulge in Samgyetang, but the story of Harim, ranked **27th in the business world**, reveals the journey of a poultry farm that began in **1978** with Kim Hong-guk, a young entrepreneur from Iksan, North Jeolla Province.
* 📉 Despite initial success, Kim faced a livestock crisis due to oversupply, leading to the **closure of his farm**, forcing him to **live in a pigsty** while repaying debts.
* 🌍 To stabilize chicken prices, Kim adopted a vertical integration model inspired by a U.S. feed company, which allowed farmers to **raise chickens without upfront costs**, enhancing **supply chain efficiency**.
* 🏭 With the rise of fried chicken popularity during the late 1980s, Kim acquired a slaughterhouse and rebranded the company as **Harim**, rapidly **expanding production capabilities**.
* 📦 The introduction of mandatory chicken packaging in 2006 allowed Harim to strengthen its brand image, leading to **increased consumer trust and demand** for their products.
* 🍗 Harim diversified its offerings by creating popular products like **Yonggari chicken** and **canned breast meat**, adapting to market demands while **growing its sales channels**.
* 🚀 Despite facing setbacks, including a devastating fire in 2003, community support and strategic expansion allowed Harim to **recover and solidify its position** in the poultry industry.
* 💼 Today, as Harim continues to grow and diversify, it faces challenges related to **farmer relations and succession planning**, highlighting the **complex dynamics of agricultural competitiveness** in South Korea.

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