Journalist

Cho Jae-hyung
  • Culley Reports Record Quarterly Earnings with 1,277% Surge in Operating Profit
    Culley Reports Record Quarterly Earnings with 1,277% Surge in Operating Profit Retail tech company Culley reported its highest quarterly performance since its founding in the first quarter of this year. Culley announced on May 11 that its consolidated operating profit for the first quarter reached 24.2 billion won, a staggering 1,277% increase compared to the same period last year. During the same period, revenue grew by 28.4% to 745.7 billion won. The company also reported a net profit of 20.3 billion won, marking a return to profitability. The total gross merchandise volume (GMV) for the first quarter hit a record high of 1.08 trillion won, reflecting a 29% increase year-over-year. Considering that the domestic online shopping transaction growth rate for the first quarter, as reported by the National Data Agency, was 9.7%, Culley’s growth rate significantly outpaces the industry average. Culley attributed its success to the growth in its core fresh and beauty sectors, as well as diversification efforts including seller delivery (3P), fulfillment services (FBK), and Culley N-Mart. The transaction volume in the food category for the first quarter increased by 27.8% compared to the same period last year. The beauty segment also saw a 20.2% growth, driven by strong sales of luxury beauty products and the rise of indie brands. Seller delivery, which includes fulfillment services, surged by 52.6%, contributing to the overall improvement in performance. Strategies to differentiate fashion and living products, along with enhanced logistics service competitiveness, also played a role in this growth. Culley N-Mart, which launched in September last year, quickly gained traction, with transaction volume in March increasing nearly ninefold compared to its initial launch. Logistics innovation has been crucial for improving profitability. In February, Culley introduced a new delivery service called 'Midnight Star Delivery,' which guarantees delivery by midnight for orders placed before 3 p.m. This addition, alongside existing early morning delivery options, has enhanced logistics operational efficiency. Furthermore, long-term enhancements at logistics centers in Gimpo, Pyeongtaek, and Changwon have begun to yield cost savings this quarter. The gross profit margin for the first quarter improved by 0.8 percentage points to 33.1%, while the selling and administrative expense ratio decreased by 2.2 percentage points, strengthening the company’s profit capacity. In conjunction with the earnings announcement, Culley’s strategic alliance with Naver has garnered attention. On May 6, Culley conducted a third-party allocation capital increase worth 33 billion won for Naver. Following this investment, Naver's stake in Culley increased to 6.2%, valuing the company at 2.8 trillion won. Culley plans to utilize the 33 billion won raised from this capital increase as a solid foundation for long-term growth. Specifically, the funds will be used to further enhance logistics infrastructure, which is critical for delivery competitiveness, and to finance new business initiatives aimed at discovering future revenue streams. Kim Jong-hoon, Culley’s Chief Financial Officer, stated, "Through consistent efforts in product, logistics, and technology, we have differentiated the customer experience, and our attempts at business diversification to secure new growth drivers are now showing results from the first quarter." He added, "Having demonstrated both growth and profitability through the establishment of a clear business model that a differentiated technology platform company should have, we plan to solidify and accelerate our IPO roadmap."* This article has been translated by AI. 2026-05-12 03:32:53
  • Lotte Shopping Reports 70% Surge in Q1 Operating Profit Driven by Foreign Tourists
    Lotte Shopping Reports 70% Surge in Q1 Operating Profit Driven by Foreign Tourists Lotte Shopping reported a significant increase in its first-quarter performance, driven by growth in its department store segment. The surge in spending by foreign tourists, particularly in Myeongdong, along with high-margin fashion sales, contributed to a more than 70% rise in operating profit. The company also noted improvements in its profitability efforts and strong performance in overseas markets, including Vietnam. On May 11, Lotte Shopping announced that its consolidated operating profit for the first quarter reached 252.9 billion won, marking a 70.6% increase compared to the same period last year. Revenue rose by 3.6% to 3.5816 trillion won, while net profit skyrocketed by 694.1% to 143.9 billion won, exceeding market expectations. The department store division was the standout performer, with first-quarter sales of 872.3 billion won and operating profit of 191.2 billion won, representing growth of 8.2% and 47.1%, respectively, from the previous year. Domestic sales from major stores, including the flagship store, Jamsil, and Busan, increased by 19%, while sales to foreign tourists surged by 92%, contributing to a 13% increase in same-store sales. Notably, sales from the flagship store to foreign customers more than doubled, increasing by 103% year-on-year, and accounted for 23% of total sales, driving overall performance improvements. Additionally, strong sales of high-margin fashion products led to a 43.5% increase in operating profit compared to the same period last year. The overseas department store segment also showed positive trends, with total sales rising across all locations, including a 28% increase in Vietnam and a 7% increase in Indonesia. The Lotte Mall Westlake Hanoi achieved a record operating profit of 4.9 billion won in the first quarter. Consequently, overseas sales reached 35.5 billion won, up 14.7% from the previous year, with operating profit soaring by 268.7% to 7.6 billion won. Looking ahead to the second quarter, the department store division plans to continue attracting foreign customers by specializing in K-content-based product planning and marketing, particularly at the flagship and Jamsil locations. The supermarket division, which operates Lotte Mart, reported first-quarter sales of 1.5256 trillion won, a 2.6% increase from the previous year, with operating profit rising by 20.2% to 33.8 billion won, reflecting a focus on profitability. Domestic supermarkets benefited from efficient promotions and a reduction in operating expenses, achieving a 30.9% increase in operating profit to 8.8 billion won compared to the same period last year. The overseas business also performed well, particularly in Vietnam, with total sales reaching 485 billion won and operating profit of 25 billion won, representing increases of 3.4% and 16.8%, respectively, from the previous year. The Vietnamese market showed an impressive growth rate of 18%, driving overall improvements in overseas performance. The supermarket division aims to enhance brand competitiveness and customer attraction through innovations in fresh food quality, strengthening private brand offerings, and regular promotions like 'Big Day.' In the online sector, the launch of the 'Zeta Smart Center Busan' utilizing Ocado's Smart Platform (OSP) aims to bolster competitiveness in the grocery market. The company also plans to continue expanding in the Vietnamese market with new store openings and renovations of existing locations. Among its subsidiaries, Lotte Home Shopping reported a 2.1% increase in sales to 232.4 billion won, with operating profit rising by 118.6% to 26.4 billion won, driven by a portfolio focused on high-margin products like health and beauty items, and an expansion of content commerce through social media. Culture Works, responsible for the film business, saw a 49.2% increase in cinema attendance due to the success of the film 'The King and the Clown,' which became the second-highest-grossing film in South Korea's history. This resulted in an operating profit of 7.9 billion won and a 44.4% increase in revenue to 124.6 billion won. In contrast, the electronics retail division, Lotte Hi-Mart, faced challenges due to a downturn in the electronics market and a sluggish real estate sector, reporting an operating loss of 14.7 billion won in the first quarter, widening its losses compared to the previous year. The e-commerce division also reduced its losses by 2.7 billion won compared to the previous year, but still recorded an operating loss of 5.8 billion won in the first quarter. Im Jae-cheol, head of Lotte Shopping's finance division, stated, "In the first quarter of this year, we achieved remarkable results based on the solid performance of our department stores and the profitability improvements of our subsidiaries. We will continue to strengthen the fundamental competitiveness of our domestic business and solidify sustainable growth through overseas expansion."* This article has been translated by AI. 2026-05-11 10:39:40
  • Mongolia Emerges as a New Battleground for K-Distribution
    Mongolia Emerges as a New Battleground for K-Distribution Mongolia is emerging as a battleground for South Korea's retail industry. With a young demographic and the popularity of K-content, businesses are expanding beyond convenience stores and large supermarkets to include private brand (PB) specialty stores and restaurant franchises. According to data from the Korea Customs Service on May 10, South Korea's exports to Mongolia rose from $271.16 million in 2020 to $660.46 million last year. This marks a more than twofold increase over five years, reflecting a consistent upward trend in exports during this period. Analysts attribute this export growth to the influence of K-content. In Mongolia, where over 60% of the population of approximately 3.5 million is under the age of 34, the popularity of K-content has led to a surge in exports of South Korean consumer goods, including cosmetics and food products. Cosmetic exports skyrocketed from $31 million in 2023 to $45 million last year, while exports of K-food items such as ramen, snacks, and seasoned seaweed grew by 8%, 40%, and 38%, respectively. Recognizing Mongolia's growth potential, South Korean retailers are intensifying their efforts to penetrate the market. E-Mart plans to open three No Brand specialty stores in Mongolia this year. The company entered the Mongolian market in 2016 as a master franchise and currently operates six stores. E-Mart aims to expand its business by establishing No Brand as a separate specialty store. To facilitate this, it signed a business agreement with SKY Hypermarket LLC, the operator of E-Mart in Mongolia, at the end of last month. The goal is to increase the number of No Brand specialty stores to 15 by 2028 and to establish a dedicated logistics cluster, with plans to expand to 50 stores within ten years. The K-distribution wave in Mongolia is prominently represented by convenience stores. BGF Retail's CU has been operating 556 stores since entering Mongolia in 2018, while GS25, which entered in 2021, has expanded to 292 stores, increasing its market share. These stores have positioned themselves as key cultural spaces for Mongolia's 2030 generation by offering differentiated products such as Korean-style instant foods like tteokbokki and gimbap. Restaurant franchises and beverage brands are also accelerating their entry into the Mongolian market. CJ Foodville's Tous Les Jours, which entered Mongolia in 2016, operates 24 stores and has sold over 1.7 million cakes in ten years. MegaMGC Coffee, known for its affordable coffee, opened its first store in May 2024 and has expanded to eight locations in just over two years. Lotte Chilsung Beverage's beer brand, Crush, which entered the market in 2024, is now available in over 2,000 locations, including convenience stores and large supermarkets. This has contributed to a nearly 90% increase in Lotte Chilsung's beer exports to Mongolia last year compared to the previous year. The strong performance in exports to Mongolia has also led to a 40% increase in global beer exports last year. An industry insider noted, "Mongolia is a new emerging market that the South Korean retail industry is focusing on to reduce its dependence on China. With convenience stores and large supermarkets already established, competition for market share among franchises, PBs, and beverage brands is expected to intensify in the future."* This article has been translated by AI. 2026-05-11 03:41:06
  • KT Alpha Reports 10.5% Increase in Q1 Operating Profit
    KT Alpha Reports 10.5% Increase in Q1 Operating Profit KT Alpha has opted for profitability over expansion, achieving a double-digit growth rate in operating profit for the first quarter of this year. The company has reduced its reliance on low-margin direct purchases, which carry significant inventory burdens, and has focused on developing its business-to-business (B2B) mobile gift certificate operations. This strategy has been deemed successful. According to the Financial Supervisory Service's electronic disclosure system on May 8, KT Alpha reported a consolidated operating profit of 13.5 billion won for the first quarter, a 10.5% increase compared to the same period last year. Net profit for the period was 11.4 billion won, while total sales decreased by 0.4% to 96.2 billion won. A representative from KT Alpha stated, "Sales slightly decreased due to adjustments in our product portfolio focused on consignment operations, but overall stability has improved." In its core T-commerce sector, the effects of the profitability-focused restructuring are becoming evident. First-quarter sales fell by 4.0% year-on-year to 63.8 billion won due to reduced direct purchase operations, yet operating profit increased by 4.8%. The introduction of exclusive products tailored to active seniors and lifestyle trends, along with enhanced programming, has contributed to this improvement in profitability. The T-commerce market, which sells products via television, has faced challenges recently as viewership declines and mobile shopping surges. In response, KT Alpha plans to strengthen its mobile channels and enhance broadcast quality through artificial intelligence (AI) technology to boost competitiveness. The mobile gift certificate business has shown even more pronounced growth. First-quarter sales of mobile gift certificates rose by 7.5% year-on-year to 32.4 billion won, with operating profit increasing by 8.4%. Notably, a targeted sales approach aimed at B2B clients and proactive partnerships with major platforms led to a 43.3% surge in overall transaction volume. KT Alpha's mobile gift certificate brand, 'Giftishow,' maintains the top market share in the domestic B2B mobile gift certificate sector, surpassing 180,000 corporate clients by the end of last year. KT Alpha is also enhancing its shareholder return policy. The company achieved a record annual operating profit of 44.2 billion won last year and initiated its first cash dividend of 280 won per common share, marking the beginning of its shareholder return strategy. A KT Alpha representative remarked, "This year, we will focus on AI-driven efficiency and customer experience innovation under the theme of 'innovation amid stability.' Additionally, we plan to achieve sustainable growth and enhance shareholder value through expanded partnerships and group synergies."* This article has been translated by AI. 2026-05-08 18:18:29
  • 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