Journalist

Cho Jae Hyung
  • CJ Freshway Reports 1st Quarter Operating Profit of 11 Billion Won
    CJ Freshway Reports 1st Quarter Operating Profit of 11 Billion Won CJ Freshway has continued its growth in the first quarter by evenly expanding its distribution and food service sectors. On May 8, CJ Freshway announced that it achieved sales of 833.9 billion won and an operating profit of 11 billion won in the first quarter of this year, marking increases of 4.4% and 3.8%, respectively, compared to the same period last year. The core food distribution business, which includes restaurant ingredients and food materials, recorded sales of 399.9 billion won. Online sales in this segment surged by 17% year-on-year, driving overall growth. The domestic B2B food distribution market is valued at 50 trillion won annually, but most transactions still occur offline through regional wholesalers. This is why major distribution companies are fiercely competing to digitize this market. To lead this market transformation, CJ Freshway increased its stake in the IT company Marketboro, which operates the B2B food distribution open market platform 'Sikbom,' to 55%, becoming its largest shareholder in March. Leveraging this position, the company is aggressively expanding its franchise customer base and enhancing its logistics network with differentiated products such as dairy and seafood to accelerate its dominance in the online distribution ecosystem. The food service business, benefiting from the kitchenless strategy, recorded sales of 427.4 billion won. The kitchenless model, which provides meal services without location constraints, saw related service revenues, including 'Fresh Meal On,' increase by 41% year-on-year, contributing to improved profitability. In January, CJ Freshway opened the country's largest food court, 'Gourmet Bridge,' at Incheon Airport's Terminal 2, resulting in a 43% increase in sales from large concession channels compared to the previous year. The expansion of food service ingredient sales, particularly in the kids' and school meal segments, also supported the company's overall performance. Im Sung-cheol, Chief Financial Officer of CJ Freshway, stated, "Despite seasonal off-peak periods and an uncertain external environment, we have confirmed balanced growth in both the distribution and food service sectors, as well as the success of our new growth model centered on online and kitchenless strategies. We will accelerate our execution to establish a sustainable growth structure focused on profitability, as the foundation we have built in new businesses is beginning to yield significant results."* This article has been translated by AI. 2026-05-08 17:58:48
  • Dongwon Industries Reports 17.1% Increase in Q1 Operating Profit Driven by Packaging and Logistics Growth
    Dongwon Industries Reports 17.1% Increase in Q1 Operating Profit Driven by Packaging and Logistics Growth Despite facing the dual challenges of rising raw material prices and high exchange rates, Dongwon Group demonstrated growth in the first quarter. The B2B sector and logistics and construction subsidiaries filled the gap left by the seafood and food divisions, boosting the group's overall performance. Dongwon Industries, the holding company of Dongwon Group, announced on May 8 that its consolidated revenue for the first quarter reached 2.53 trillion won, a 9.1% increase from the previous year, while operating profit rose 17.1% to 146.2 billion won. Performance varied among subsidiaries. Dongwon Industries' standalone revenue from the seafood division fell 7.8% to 295.8 billion won, with operating profit plummeting 35.7% to 66.6 billion won. Dongwon F&B, a food subsidiary, saw slight revenue growth due to the rise of online sales. However, operating profit declined by over 6% due to cost pressures from high exchange rates, unstable raw material supply, and intensified competition in offline sales. Conversely, the B2B and non-food subsidiaries served as a backbone for the group's performance. Dongwon Systems, a packaging and materials subsidiary, managed to perform well despite the burdens of high exchange rates and rising prices for naphtha and aluminum, thanks to increased exports of high-value products like flexible packaging and food cans. Dongwon Systems reported consolidated revenue of 337.8 billion won and operating profit of 13 billion won, marking increases of 0.3% and 3.9%, respectively. Notably, demand for pet food and retort pouches surged in the North American market, and the company expanded its export reach to 30 countries by securing new clients in Asia and Africa. Exports in the materials sector grew by approximately 20% year-on-year. Leveraging its technological expertise in the packaging business, Dongwon Systems is also investing in new ventures, including materials for secondary batteries and advanced films, to establish long-term growth drivers. Dongwon Home Food, a food distribution company, experienced balanced growth across all business areas, including seasoning products, meal services, and meat distribution, leading to improved performance through the expansion of new clients. Logistics subsidiary Dongwon Loex and construction subsidiary Dongwon Construction Industry also contributed to the group's profit improvement with double-digit growth in both revenue and operating profit. A Dongwon Group official stated, "The challenging business environment continues with high exchange rates, unstable raw material supply, and a sluggish domestic market, increasing our burdens." He added, "While the outlook for the second quarter remains bleak, we will focus on solid management based on our robust business portfolio spanning seafood, food, materials, and logistics." * This article has been translated by AI. 2026-05-08 16:48:49
  • Kolmar posts record quarterly profit amid rising demand for sunscreen products
    Kolmar posts record quarterly profit amid rising demand for sunscreen products SEOUL, May 8 (AJP) - Cosmetics maker Kolmar posted its best-ever quarterly results, thanks to surging demand for sun-care products ahead of the summer season. Its operating profit for the first three months of this year rose 31.6 percent from a year earlier to 78.9 billion Korean won (about US$54 million), while revenue increased 11.5 percent to 728 billion won and net profit jumped 158.7 percent to 60 billion won. Both operating profit and revenue reached record highs for any quarter, a notable achievement given that the first quarter is typically a slow season for the cosmetics industry. Kolmar manufactures a range of cosmetics including sunscreen and skincare products for major brands such as Innisfree and Dr.Jart+ as well as indie beauty brands like Goodai Global. In particular, its line of sun-care products developed in collaboration with Goodai Global recently surpassed 100 million units in cumulative sales over the past five years. A Kolmar staffer attributed the company's best-ever first-quarter performance to surging demand for sunscreen and related products as consumers stock up ahead of the summer months. 2026-05-08 16:06:02
  • Hyundai GF Holdings Reports 24% Increase in Q1 Operating Profit
    Hyundai GF Holdings Reports 24% Increase in Q1 Operating Profit Hyundai GF Holdings, the holding company of the Hyundai Department Store Group, reported strong results for the first quarter of this year, driven by improved profitability across its major subsidiaries. According to a disclosure on May 8 from the Financial Supervisory Service, Hyundai GF Holdings announced that its consolidated operating profit for the first quarter was 117.6 billion won, marking a 23.9% increase compared to the same period last year. Revenue for the quarter was 2.0837 trillion won, a slight increase of 0.6% year-on-year. The growth in performance was largely attributed to Hyundai Green Food and Hyundai Home Shopping. Hyundai Green Food recorded consolidated sales of 621.5 billion won and an operating profit of 46.4 billion won for the first quarter, representing increases of 8.9% and 43.9%, respectively, compared to the previous year. The rise in demand for company cafeterias amid high inflation, along with growth in new business areas such as care food and dining, has been credited for the success of its diversification strategy. Hyundai Home Shopping also contributed to the positive results, with consolidated sales of 978.5 billion won and an operating profit of 65.3 billion won, reflecting increases of 1.9% and 35.9%, respectively, from the previous year. The net profit for the period surged by 61.6% to 54.7 billion won. A revamped programming strategy that reflects customer trends, along with strong performance from subsidiaries Hanssem and Hyundai FutureNet, played a significant role in these results. A representative from Hyundai GF Holdings stated, "The increase in both revenue and operating profit was due to the strong performance of key subsidiaries like Hyundai Green Food and Hyundai Home Shopping. We expect the growth trend in our department stores and home shopping channels to continue into the second quarter."* This article has been translated by AI. 2026-05-08 15:53:30
  • Lotte Wellfood Reports 118% Increase in Q1 Operating Profit to 35.8 Billion Won
    Lotte Wellfood Reports 118% Increase in Q1 Operating Profit to 35.8 Billion Won Lotte Wellfood has successfully rebounded in its first-quarter earnings this year through enhanced global competitiveness and improved operational efficiency. The growth of its overseas subsidiaries in countries like India and Kazakhstan has been a key driver of this performance, alongside domestic efforts to streamline low-margin products. On May 8, Lotte Wellfood announced that its consolidated revenue for the first quarter reached 1.0273 trillion won, with an operating profit of 35.8 billion won. Revenue increased by 5.4% compared to the previous year, while operating profit surged by 118%, resulting in an operating profit margin of 3.5%. Sales from overseas subsidiaries amounted to 270.5 billion won, marking an 18% increase year-on-year. Including exports of 66 billion won (an 8% increase), the total share of overseas sales rose to 32%. Notably, strong performances in key global markets such as India and Kazakhstan fueled first-quarter growth. In India, the integration of subsidiaries has led to expanded sales channel coverage and strong sales of core products. The Indian market is a critical strategic focus for Lotte Wellfood, with plans to expand its third line of Choco Pie production and construct a large ice cream factory in the Pune region. In Kazakhstan, the company saw positive results from increased domestic sales and exports. The expansion of trading partners in major export markets like the United States and China has also contributed to improved profitability through fixed cost leverage across its international operations. Domestically, Lotte Wellfood has prioritized profitability over mere growth. In response to slowing consumer demand, the company has aggressively streamlined low-efficiency SKUs (stock-keeping units) and sales channels. The company has expanded its premium offerings for mega brands such as "Mont Blanc," "Pepero," and "World Cone," while also introducing new products that reflect market trends, such as the "Dubai ST Choco Pie." Looking ahead, Lotte Wellfood plans to proactively address fluctuations in raw material prices and exchange rate uncertainties due to geopolitical risks, including conflicts in the Middle East. In South Korea, the company aims to strengthen collaborative marketing with the Korea Baseball Organization (KBO) and secure early inventory for ice cream products to maximize sales during peak season. Internationally, Lotte Wellfood intends to enhance the logistics systems of its integrated Indian subsidiary and increase brand recognition in Kazakhstan to solidify its global competitiveness. A Lotte Wellfood representative stated, "We will continue to accelerate the global expansion of our core brands and strengthen seasonal marketing efforts to maintain a solid trend of profitability improvement."* This article has been translated by AI. 2026-05-08 15:23:54
  • Korean Kolmar Reports Record Q1 Operating Profit of 78.9 Billion Won Amid K-Beauty Export Surge
    Korean Kolmar Reports Record Q1 Operating Profit of 78.9 Billion Won Amid K-Beauty Export Surge Korean Kolmar, a cosmetics contract manufacturer, reported its highest-ever quarterly performance in the first quarter of this year, driven by a surge in global demand for sun care products in anticipation of early summer heat. According to the Financial Supervisory Service's electronic disclosure system on May 8, Korean Kolmar's consolidated operating profit for the first quarter reached 78.9 billion won, a 31.6% increase compared to the same period last year. Sales rose to 728 billion won, up 11.5% year-on-year, while net profit soared by 158.7% to 60 billion won. Both operating profit and sales marked the highest figures ever recorded for a single quarter. This performance is particularly noteworthy given that the first quarter is traditionally considered a slow season in the cosmetics industry. Korean Kolmar, the first ODM company designated as a large business group by the Fair Trade Commission, has secured numerous global indie brand clients in the sun care and skincare sectors. Notable clients include Gudai Global's 'Joseon Beauty' and Skin Angel's 'Skin1004.' In collaboration with Gudai Global, Korean Kolmar has co-developed sun care products such as 'Clear Rice Sunscreen' and 'Birch Juice Moisturizing Sunscreen,' surpassing cumulative sales of 100 million units over the past five years. The company is recognized as an ODM that has simultaneously secured competitive sun care formulations and a strong indie brand client base amid the expanding K-beauty export landscape. A representative from Korean Kolmar stated, "The record performance in the first quarter was achieved due to increased orders for skincare and sun care products driven by rising summer demand, along with strong exports of indie brands." 2026-05-08 13:49:18
  • Homeplus Sells Express Division Amid Liquidity Crisis; NS Home Shopping Expands Offline Presence
    Homeplus Sells Express Division Amid Liquidity Crisis; NS Home Shopping Expands Offline Presence Homeplus has sold its profitable supermarket division, Homeplus Express, to NS Home Shopping as a desperate measure to escape bankruptcy. However, the company has shuttered 37 stores due to ongoing liquidity issues, unable to wait for the sale proceeds expected in two months. Meanwhile, NS Home Shopping is leveraging this acquisition to establish a nationwide offline presence and expand its omnichannel operations. According to the retail industry on May 8, Homeplus and NS Home Shopping signed a sales agreement for the Homeplus Express division, approved by the Seoul Bankruptcy Court. Homeplus will receive 120.6 billion won (approximately $91 million) in cash, conditional on the assumption of some debts. While this amount falls short of the anticipated 300 billion won, it provides crucial liquidity for overdue wages and payments to suppliers during its bankruptcy proceedings. However, Homeplus's liquidity crisis persists, as the sale proceeds will not arrive for two months. After a 100 billion won injection from its major shareholder MBK Partners in March, most of those funds have been depleted. Homeplus must secure operational funds before the July 3 deadline for its rehabilitation plan. The company announced that the sale alone will not cover the operational funds needed for its rehabilitation process and plans to initiate a "second restructuring" focused on securing additional funds and improving store efficiency. Homeplus has requested short-term loans, including bridge loans and debtor-in-possession financing, from its largest creditor, Meritz Financial Group, until the sale proceeds are received. However, it has yet to receive a concrete response from Meritz regarding this support. Meritz currently holds collateral worth 4 trillion won, four times the 1.2 trillion won loan to Homeplus, covering 68 stores. Homeplus stated, "Without financial support from Meritz, which holds all cash-equivalent assets, recovery is impossible." The company has seen significant revenue declines due to stricter trading conditions and reduced deliveries from major suppliers during the rehabilitation process. Although MBK has provided operational funds through personal investments and guarantees, these resources are nearly exhausted due to prolonged rehabilitation and worsening business conditions. Consequently, Homeplus will temporarily close 37 of its 104 stores from May 10 to July 3, focusing operations on the remaining 67 locations. The strategy includes prioritizing limited product supplies to key stores to minimize revenue loss and customer attrition. Employees at the closed stores will receive 70% of their average wages, with options for reassignment to other locations. In-store rental shops will continue normal operations. Industry analysts view this move as a critical gamble for Homeplus's recovery. The Homeplus union has expressed urgency, stating, "We must prioritize funding for normalizing product supply, even if it means sacrificing wages." Homeplus plans to submit a revised rehabilitation plan to the court and creditors, outlining strategies for store efficiency and the sale of remaining business segments. NS Home Shopping Secures Nationwide Offline Distribution Network In contrast, NS Home Shopping's acquisition of Homeplus Express allows it to expand beyond its TV and mobile-centric business model to establish a nationwide offline distribution network. An NS Home Shopping representative stated, "This agreement will enhance our competitiveness by leveraging our expertise in food and distribution across both online and offline channels." NS Home Shopping plans to accelerate its food-centric omnichannel strategy by connecting offline stores with online ordering and delivery, utilizing its existing customer base. The company aims to draw TV shopping customers into physical stores while offering online services to in-store visitors. However, challenges remain post-acquisition. Homeplus Express has experienced key personnel losses and diminished sales capabilities during its lengthy rehabilitation process. Additionally, the strong influence of labor unions may complicate workforce reallocation and organizational stabilization. NS Home Shopping will also face fierce competition from established players like Emart Everyday and GS The Fresh in the SSM market. An industry insider noted, "This transaction reflects the mutual interests of Homeplus, which needed to sell valuable assets for survival, and NS Home Shopping, which urgently required an offline food distribution network. Homeplus's immediate priority is overcoming its liquidity crisis, while NS Home Shopping must focus on strengthening its food competitiveness through its new offline presence." 2026-05-08 12:24:39
  • Coupang Expands Healthcare Access for Seniors and Children in Danyang
    Coupang Expands Healthcare Access for Seniors and Children in Danyang Coupang is accelerating its healthcare support initiative in rural areas with limited medical infrastructure. Ahead of the opening of its advanced logistics center in Jecheon next year, the company is deploying a team of medical professionals to Danyang, a region with a high elderly population, to provide tailored healthcare services. On May 7, Coupang held its "On-Dongne Care" program at the Maepo Gymnasium in Danyang County, targeting residents in medical blind spots. This was the second mobile clinic event following its launch in Jangsu County, Jeollabuk-do, in April. Danyang County has a population of about 26,000, with 37.6% aged 65 and older, making it a representative ultra-aged community. Given the local challenges in accessing advanced hospitals, Coupang partnered with the Korean Medical Volunteer Corps to send over 40 medical professionals, including specialists and nurses, to the site. The event provided comprehensive services, including internal medicine, dentistry, and traditional Korean medicine, along with bone density and blood tests for around 500 participants, including seniors and students from Maepo Middle School. For those with mobility issues, home visits for medical care were also offered. This event expanded its focus to include youth, introducing growth plate examinations and developmental assessments for children. Coupang and the medical team plan to provide essential medicine kits based on the results and will coordinate follow-up care for residents needing additional treatment at nearby hospitals. This healthcare initiative aligns with the upcoming launch of Coupang's Jecheon logistics center, which is being developed with an investment of approximately 100 billion won. The project aims to strengthen community trust through localized social contributions beyond mere job creation. A Coupang representative stated, "In honor of Parents' Day, we are pleased to support the health of local seniors and assist children's growth. We will continue to visit areas in need each month to provide tangible support to residents." Looking ahead, Coupang plans to bring the On-Dongne Care project to the Gyeongbuk region in June, continuing its efforts to support local communities. The company intends to visit rural areas across Jeolla, Gyeongsang, Gangwon, and Chungcheong provinces at least once a month, focusing on villages where hospital access is challenging. 2026-05-08 11:43:54
  • KT&G Reports 27.6% Increase in Q1 Operating Profit Driven by Overseas Sales
    KT&G Reports 27.6% Increase in Q1 Operating Profit Driven by Overseas Sales KT&G achieved double-digit growth in both revenue and operating profit in the first quarter of this year, driven by record overseas sales. The company plans to enhance shareholder returns with a significant stock buyback and increased dividends in the second half of the year. During an investor relations meeting on May 7, KT&G reported that its consolidated operating profit for Q1 2026 rose 27.6% year-on-year to 364.5 billion won. Revenue increased by 14.3% to 1.7036 trillion won. The tobacco division's revenue reached 1.1559 trillion won, a 17% increase, while operating profit grew 27.2% to 321.6 billion won. The overseas tobacco business saw sales rise evenly across key regions, including Asia-Pacific and Eurasia, with Q1 revenue hitting 559.6 billion won, a 24.6% increase and a quarterly record. Cost reductions also contributed to a 56.1% surge in operating profit, marking a "triple growth" in revenue, operating profit, and sales volume. This trend is reflected in annual figures as well. Last year, KT&G's overseas tobacco sales reached 1.8775 trillion won, a 29.4% increase, with global sales surpassing domestic sales for the first time at 54.1%. KT&G CEO Bang Kyung-man highlighted this achievement at the shareholders' meeting, stating, "The overseas tobacco business has surpassed the Korean market, marking a historic milestone for KT&G as it transforms into a global leader." In the domestic market, KT&G maintained a 68.8% market share in the cigarette sector. The next-generation product (NGP) segment saw sales grow 51.5% year-on-year to 241 billion won, benefiting from both domestic and international growth and a rebound from last year's supply chain issues. KT&G plans to continue launching new products throughout the year to strengthen its market leadership. KT&G aims to leverage its competitive edge in the overseas tobacco business to expand its NGP products globally. The company is preparing to increase its direct entry into the heated tobacco market, utilizing its established distribution networks and expertise in key regions. Following the launch of its Kazakhstan factory, a new facility in Indonesia is set to begin operations in the first half of the year, accelerating its overseas production capabilities. In the health supplements division, KGC reported a 5.8% increase in revenue to 332.6 billion won, driven by successful promotions during the Lunar New Year and effective brand campaigns for products like Cheongnok and Everytime. Operating profit rose 53.3% to 27.9 billion won due to expanded high-margin sales channels and a focus on profitability. KT&G is also entering the global nutrition market, having established a dedicated center to promote ginseng raw materials for B2B transactions with global food and cosmetics companies, diversifying its international business. The company is enhancing shareholder returns, having completely retired 10,866,189 shares (9.5% of total issued shares, valued at approximately 1.8516 trillion won) on April 23. This move exceeded its stock buyback target for 2024-2027 ahead of schedule. In the second half of the year, KT&G plans to announce a new shareholder return policy focused on increasing dividends. KT&G Senior Vice President Lee Sang-hak stated, "Despite uncertainties in the external environment due to geopolitical issues in the Middle East, we expect stable revenue growth across all regions, including Asia-Pacific, Eurasia, and new markets, to continue for our overseas tobacco business." He added that the company would pursue ongoing shareholder return policies, including dividend increases, based on its performance growth from global expansion.* This article has been translated by AI. 2026-05-07 22:09:48
  • Philip Morris Korea Expands Safety Partnership Program to Prevent Workplace Accidents
    Philip Morris Korea Expands Safety Partnership Program to Prevent Workplace Accidents Philip Morris Korea is expanding a workplace safety initiative aimed at improving conditions for partner companies and the local community. The company said Thursday that it held a launch ceremony and seminar May 6 at the Gyeongnam Eastern Branch of the Korea Industrial Safety Association in Yangsan, South Gyeongsang Province, for a “large-small business safety and health partnership program” jointly promoted with the Korea Occupational Safety and Health Agency. At the event, the Yangsan plant and the association’s Gyeongnam Eastern Branch signed a memorandum of understanding to help eliminate industrial accidents in the region, the company said. The two sides said they will cooperate on on-site technical support, tailored consulting and the sharing of professional safety expertise. The program will be run through a consultative body made up of internal and external partner companies and local small and midsize businesses, focusing on detailed risk assessments and customized on-site support reflecting each workplace’s conditions. The company said this year’s program significantly expands both funding and participants. With four additional in-house partner companies and one local small business added, the number of beneficiary sites rises to 10: four in-house partners, four outside partners and two local small and midsize businesses. The support package has also been refined, including new assistance for foreign workers, who make up a growing share of the industrial workforce. To reduce accidents linked to language barriers, the company said it will distribute safety manuals translated into multiple languages and provide on-site interpretation and tailored consulting. A campaign to prevent heat- and cold-related illness during periods of extreme heat and cold will also be conducted, it said. The company said the program will follow a phased roadmap for about five months, starting with the launch event and continuing through joint inspections, safety equipment support and on-site training, before a final results seminar in September. Philip Morris Korea said it ran the program last year with eight partner companies and small businesses, providing six months of consulting and supplying essential safety and health items, including automated external defibrillators, to help spread a safety culture across its supply chain. Haroon Basheer, head of the company’s Yangsan plant, said, “As we participate for the second year in a row, we will build on the experience we have accumulated and focus on sharing safety management know-how by expanding the scope beyond in-house partners to include local small businesses and foreign workers.”* This article has been translated by AI. 2026-05-07 13:49:19