[CMN Reporter Lee Jung-ah] Dongbang B&H (Co-CEO Kim Tae-hee and Lee Sang-up) is attracting attention from the industry as a case of overcoming the crisis through bold investment and direct entry into the local market. <br> <br>On the 13th of last month, Dongbang B&H signed an MOU with LEE BUILD TRADING (an overseas private network in Uzbekistan designated by the Ministry of Commerce and Industry) and VOKHIDJON (a local joint venture in Uzbekistan) to establish a joint venture to operate cosmetics (hair care, body care) and household products (soap, detergent, toothbrush). <br> <br>"This was made possible through the active initiative of Mr. Lee Chung-koo, CEO of the Overseas Private Network of the Korea Small and Medium Business Corporation," said an official from Dongbang B&H. "Under the leadership of Dongbang B&H, we plan to build production facilities in Uzbekistan and transfer our production technology and know-how to produce excellent products and target the local market." <br> <br>To this end, Dongbang B&H's co-president Lee Chung-koo spent a week with Lee in September last year and completed detailed market research. Before the trip, they prepared a basic business plan, and based on the data, they checked investment risks by meeting with investors, embassies, and Kotra. Afterward, they reportedly conducted market research and vendor meetings in every corner of the country. <br> <br>As a result of the research, the company confirmed the growth potential of the CIS countries, which maintains an annual economic growth rate of more than 6%, and decided to establish a local factory rather than exporting finished products, considering the positive aspects of economic policies such as high tariffs on imports and the new government's foreign exchange liberalization. <br> <br>The company explained that it has established a strategy to maintain price and quality competitiveness, secure a factory site in line with the new government's policy to encourage foreign-invested companies, develop products with high cost-effectiveness, and implement an export strategy through a favorable logistics environment in neighboring Russia and the CIS countries. <br> <br>Thus, Dongbang B&H has secured an excellent production base in Central Asia such as Uzbekistan and Kazakhstan, CIS countries such as Ukraine and Azerbaijan, and Russia. It will be interesting to see if this project will become a success story and a model of export strategy for a small and medium-sized enterprise in the midst of economic crisis. <br> <br>Meanwhile, despite the deteriorating economic indicators of SMEs since its establishment in 1986, Dongbang B&H has launched about 10 cosmetic-grade premium eco-friendly detergents as an ODM in the past year through bold investment and aggressive management. In March this year, the company upgraded its quality management system by receiving ISO CGMP 22716 certification. The company has also invested more than twice as much in new production facilities, continuing its aggressive management.