Orion Choco Pie Successor Search

Tam Suh-won, the 36-year-old heir to Korean confectionery giant Orion, has made a significant impression within the snack industry. Beyond his noticeable physique suggesting a dedication to weightlifting, Tam’s influence at Orion has been amplified by his recent promotion to executive vice president at the close of last year.

This ascent of the third-generation heir to upper management coincides with Orion’s intensified focus on global expansion. The company reported record earnings for the past year, achieving 3.3 trillion won ($2.2 billion) in sales and 558.2 billion won in operating profit, marking increases of 7.3 percent and 2.7 percent respectively from 2024. This growth occurred despite challenges posed by rising raw material costs and fluctuating exchange rates.

Tam’s journey with Orion began in 2021. Following an initial year in the business management department, he was quickly elevated to senior vice president in 2023. Just two years later, Tam assumed leadership of the company’s strategic management division, concurrently becoming executive president.

Orion strategically restructured its organization, placing the new business team, overseas business team, management support team, and corporate social responsibility team under the strategic management division led by Tam. This division now functions as the firm’s global headquarters, positioning him at the forefront of future business initiatives and signaling a clear succession pathway for the company’s next leader. Previously, the new and overseas business teams reported to the CEO, while the CSR team was integrated within the audit commission.

“The rapid advancement of third-generation heirs is not uncommon within the food and retail sectors,” noted an industry insider.

“Looking at companies like Nongshim and (Samyang Roundsquare), their third-generation successors have attained leadership positions within a few years of joining. The onus is on these young leaders to demonstrate their ability to expand the business with strong performance.”

Before joining Orion, Tam gained experience in the financial team at Kakao Enterprise, an AI-driven platform and solutions spinoff from the Korean IT conglomerate, Kakao. He holds a dual-degree MBA from Seoul National University and Peking University, as well as a bachelor’s degree in communications from New York University.

In a move that sets him apart from many executives at large corporations like Orion, Tam opted to remove the doors to his office, creating an open workspace designed to foster increased communication with colleagues. Despite his relatively brief tenure at Orion, the young leader aims to strengthen relationships with employees as he expands his influence within the company and seeks out the next growth opportunity.

Orion’s operating margin is approximately 17 percent, significantly exceeding the industry average of less than 5 percent, a result largely attributable to its substantial overseas sales. Approximately 64 percent of the company’s total sales last year were generated from international markets.

A positive trend for Orion is the diversification of its foreign markets. While China accounted for approximately half of its total sales in 2020, this figure has decreased to 39 percent as of last year’s earnings, with notable growth observed in Russia, Vietnam, and India.

Given the anticipated decline of Korea’s domestic market due to an aging population, Tam faces the long-term challenge of strengthening Orion’s market share not only in the aforementioned countries, but also in other regions, including Africa, Europe, and North America.

“(Tam) needs to identify Orion’s next blockbuster snack,” commented an industry expert. “Similar to the success of Oh! Gamja in China, Orion must develop another consistently high-selling product in a new market over the long term.”

Choco Pie — Orion’s iconic chocolate-covered cake snack filled with marshmallow — has sold over 50 billion units worldwide since its debut in 1974. Tam’s ongoing pursuit of the next Choco Pie will define his legacy as the future leader of the confectionery giant, and his involvement with LigaChem Biosciences will serve as a critical indicator of his leadership capabilities.

Orion acquired a 25.73 percent stake in LigaChem Biosciences for 550 billion won in March 2024, becoming its largest shareholder and marking the company’s largest single investment to date. LigaChem Biosciences focuses on the discovery and development of next-generation antibody-drug conjugates (ADCs), immuno-oncology drugs, and targeted small molecules.

Since the acquisition, Tam has served as an internal director at LigaChem Biosciences, actively participating in the biotechnology company’s decision-making process through weekly visits to their headquarters in Daejeon, according to Orion. Since the acquisition, the stock price of LigaChem Biosciences has nearly tripled over the past two years.

Last year, Orion and Orion Holdings increased their dividends by 40 percent from 2024, resulting in total shareholder payouts of 204.6 billion won. With dividends on the rise, market analysts suggest that the increased shareholder returns could be a strategic move in preparation for the third-generation heir’s succession.

Tam currently holds a 1.22 percent stake in Orion Holdings and a 1.23 percent stake in Orion. Orion Holdings possesses a 37.37 percent stake in Orion. Orion Chair Tam Chul-kon, Tam Suh-won’s father, and his mother Lee Hwa-kyung hold a 29.92 percent stake and a 33.98 percent stake in Orion Holdings, respectively. Chair Dam and Lee each hold a 0.45 percent stake and a 4.08 percent stake in Orion.

Tam’s older sister, Tam Kyung-sun, 41, serves as the director of the Orion Foundation, focusing on social contributions by supporting children, teenagers, schools, and the underprivileged in academia, and is not involved in management-related activities at Orion.

Tam and his three other family members were estimated to have received 51 billion won from last year’s dividend, about 25 percent of the total payout.

Orion announced in its corporate value-up plan in June that it intends to increase its payout ratio, consider gradually increasing the dividend through 2029, and explore the possibility of introducing an interim dividend payout in the future.

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