Journalist

Hong Seung-wan
  • BGF Retail Reports 68.6% Increase in Q1 Operating Profit Driven by Desserts and Convenience Foods
    BGF Retail Reports 68.6% Increase in Q1 Operating Profit Driven by Desserts and Convenience Foods BGF Retail, which operates the CU convenience store chain, reported a 68.6% increase in operating profit for the first quarter of this year, despite high inflation and weakened consumer sentiment. The company attributed this growth to successful product differentiation, improved store operations, and favorable weather conditions.BGF Retail announced that its consolidated operating profit reached 38.1 billion won, up from the same period last year. Revenue also rose by 5.2% to 2.12 trillion won.The company noted that both revenue and operating profit increased despite ongoing inflation and reduced consumer confidence due to the impact of the Middle East conflict. Favorable weather, including early cherry blossom blooms and rising average temperatures, contributed to increased outdoor activities and higher demand for convenience store services.Product competitiveness played a key role in the results. CU quickly launched dessert items reflecting current consumer trends, such as two-toned cakes, butter rice cakes, and fruit sandwiches. The 'get morning' series targeting breakfast demand and cost-effective convenience meals also attracted consumers during this inflationary period.The specialized store strategy enhanced growth rates for existing locations. CU expanded stores targeting specific consumer groups, such as ramen libraries, dessert parks, and running stations, which helped attract new customers. As a result, the growth rate for existing stores was 2.7% in the first quarter.Looking ahead to the summer peak season, BGF Retail plans to expand its differentiated products in key categories, including convenience meals, desserts, and alcoholic beverages. With rising temperatures expected to boost outdoor activities, the company aims to enhance product competitiveness to maintain sales momentum.Additionally, BGF Retail is expanding its international business. In November last year, it opened its first CU store in downtown Hawaii and plans to open 50 more locations over the next three years in tourist and commercial areas, including Waikiki Beach and Ala Moana.* This article has been translated by AI. 2026-05-07 22:02:27
  • CJ OnStyle Reports Q1 Operating Profit of 23.9 Billion Won Amid Mobile Investment
    CJ OnStyle Reports Q1 Operating Profit of 23.9 Billion Won Amid Mobile Investment CJ OnStyle's operating profit fell to 23.9 billion won in the first quarter of this year, a 7.6% decrease from the same period last year, due to increased investments aimed at enhancing mobile competitiveness. However, the company reported a 4.5% rise in revenue to 378.5 billion won, driven by a significant increase in mobile live commerce and improved app user metrics.Mobile live commerce sales surged by 137% year-on-year, fueled by content expansion through short-form videos and influencers, which boosted traffic. Additionally, new customer acquisition led to an 11.8% increase in app installations and monthly active users (MAU) compared to the previous year.Looking ahead, CJ OnStyle plans to continue its growth trajectory in the second quarter by expanding its fandom intellectual property (IP) and enhancing the competitiveness of premium products. Collaborations with external IPs, including the KBO and the film 'The Devil Wears Prada 2,' are part of this strategy. A company representative stated, "We aim to rapidly expand our fandom customer base through major external IP collaborations while simultaneously increasing customer acquisition and retention through enhanced premium product sourcing."The company will also maintain its investment in AI-driven content to bolster its short-form commerce capabilities and expand influencer commerce, ensuring continued growth in mobile live commerce.In addition, CJ OnStyle is committed to nurturing small brands, having recently selected 30 brands through its '2026 CJ On-Cubating' initiative. The company plans to provide phased support in marketing, research and development, and mobile live commerce to these brands by the end of the year.* This article has been translated by AI. 2026-05-07 21:35:47
  • GS Retail Reports 39% Increase in Q1 Operating Profit Driven by Convenience Stores and Supermarkets
    GS Retail Reports 39% Increase in Q1 Operating Profit Driven by Convenience Stores and Supermarkets GS Retail reported a 39.4% increase in operating profit for the first quarter of this year, reaching 58.3 billion won, thanks to strong performance in its convenience stores, supermarkets, and home shopping sectors. The company attributed this growth to the expansion of GS25 stores focusing on fresh products, the opening of GS The Fresh franchises, and the rise of GS Shop's private label products.During the same period, sales rose by 3.8% to 2.85 trillion won. GS25 convenience stores generated sales of 2.06 trillion won and operating profit of 21.3 billion won, marking increases of 3.7% and 23.8%, respectively, compared to the previous year. GS Retail noted that its strategy of enhancing fresh product offerings and its scrap-and-build approach—expanding existing stores or relocating to prime locations—contributed to these results.The performance of fresh-focused stores was particularly notable, with average daily sales 1.6 times higher than regular stores. Additionally, the increase in foreign tourists positively impacted convenience store sales, with foreign revenue at GS25 soaring by 73% year-on-year.GS The Fresh supermarkets benefited from a franchise-centered expansion strategy, increasing their store count to 589. Sales reached 453.4 billion won, up 9%, while operating profit surged by 55.1% to 12.1 billion won. A GS Retail representative stated, "The synergy from expanding franchise operations and leveraging supermarket stores for quick commerce has been effective."Home shopping segment GS Shop also saw improved profitability, with first-quarter sales of 262 billion won, a 1.6% increase, and operating profit of 29.7 billion won, up 32.6%. The introduction of new and exclusive products in key categories like fashion, beauty, health, and food contributed to this growth.In the first quarter, GS Shop launched 141 new products, an increase of 36 from the previous year. The success of its in-house fashion brands, such as Core Authentic and Rene Crew, also helped boost fashion sales by 7% year-on-year.A GS Retail representative remarked, "Our efforts to strengthen core business foundations have led to these strong first-quarter results. We will continue to enhance our business structure for stable long-term growth."Meanwhile, GS Retail CEO Heo Seo-hong emphasized at the March shareholders' meeting the commitment to expanding investments in artificial intelligence and digital tools to enhance operational competitiveness.* This article has been translated by AI. 2026-05-07 21:15:00
  • BGF Retail to Pay CU Store Owners Aid After Logistics Strike, Dispute With Truckers Persists
    BGF Retail to Pay CU Store Owners Aid After Logistics Strike, Dispute With Truckers Persists BGF Retail, the operator of CU convenience stores, began compensating franchise owners on Wednesday after a labor agreement between its distribution and logistics affiliate, BGF Logis, and the Cargo Truckers Union ended a disruption in CU deliveries. The company’s move comes as CU franchisees continue to press the union for damages, signaling the dispute is not over. According to the retail industry, CU store owners on Wednesday could confirm the headquarters’ support amounts on their settlement statements under an item labeled “logistics supply support funds and consolation payments.” The strike ended after BGF Logis signed a collective agreement with the union on April 30, and the support plan was finalized about a week later. Some owners said the amounts were larger than expected even when their losses were limited, industry officials said. BGF Retail issued a notice to franchisees and employees detailing the plan, which was finalized late Tuesday. It consists of store support funds and separate consolation payments, with individual deposits scheduled for May 8. The store support funds include compensation for stockouts of chilled and frozen products and reimbursement for discarded ready-to-eat meals. For the period from April 5 to 30, BGF Retail will cover the full amount of store gross profit that would have been earned from out-of-stock refrigerated and frozen items, assuming normal sales. It will also reimburse the full value of ready-meal disposals incurred during the same period. The consolation payments are additional support separate from direct loss compensation. Regional payments will be set on a sliding scale, up to 300,000 won, based on the level of supply instability. Store-by-store payments, considering stockouts and delivery delays, will be up to 700,000 won per store. BGF Retail did not disclose the total amount, but the industry estimates it at around 10 billion won. “As the franchisor, we put store stability first and prepared a plan that includes practical compensation as well as consolation payments,” a BGF Retail official said. “We will continue working so we can grow together based on partnership.” Even as deliveries return to normal, friction between franchisees and the Cargo Truckers Union continues. The CU Franchisee Council on May 4 sent the union a certified letter demanding 14 billion won in damages, steps to prevent a recurrence and a public apology, seeking to hold the union responsible for losses during the strike. The council said it will file a civil damages lawsuit if its demands are not accepted by May 15, and it will also seek criminal accountability for alleged illegal acts during the strike. Another CU franchisee group, the CU Franchisee Federation, has also recently sent the union a certified letter demanding a resolution and compensation, according to industry officials.* This article has been translated by AI. 2026-05-07 13:56:42
  • CJ CheilJedang to Showcase Korean Traditional Spirits at PGA Tour CJ Cup Byron Nelson
    CJ CheilJedang to Showcase Korean Traditional Spirits at PGA Tour CJ Cup Byron Nelson CJ CheilJedang is using the PGA Tour’s CJ Cup Byron Nelson to promote Korean traditional spirits in the United States. The company said May 7 it will serve cocktails made with Munbaeju and Gamuchi soju at this year’s tournament, aiming to introduce players and spectators to the aroma and flavor of Korean traditional liquor and build a foothold for expansion in global markets. CJ CheilJedang also offered four Munbaeju-based cocktails at last year’s event. Munbaeju is a distilled spirit made from grains such as millet and sorghum, known for a wild pear-like aroma even without additives. Lee Seung-yong, head of Munbaeju Brewery, said, “It is meaningful to be able to introduce Munbaeju to local U.S. and global consumers again this year,” adding that he expects a positive impact on future sales. The company is also preparing a traditional-liquor business to globalize “K-liquor.” In November last year, it partnered with small Korean distilleries and applied for a trademark for a premium distilled-spirit brand, jari. The name refers to a place where people gather and reflects an aim for Korean traditional liquor to “take its place” in consumers’ minds worldwide. CJ CheilJedang has signed contracts with Munbaeju Brewery and Danong Bio, which produce Munbaeju and Gamuchi soju, and is aging each base spirit at a maturation facility in Nonsan, South Chungcheong province. Targeting the U.S. market, where consumers are familiar with K-food and value food-and-drink pairings, CJ CheilJedang plans to launch related products in the second half of this year. A company official said it will work to modernize the traditional-liquor industry and promote shared growth so Korean-style distilled spirits can become a leading Asian category alongside Japanese sake and Chinese baijiu. CJ CheilJedang has recently stepped up K-food promotion through sports events. In February, it operated a “bibigo zone” in Milan, Italy, where the 2026 Milan-Cortina d’Ampezzo Winter Olympics were held, serving items including dumplings, chicken and tteokbokki. * This article has been translated by AI. 2026-05-07 10:48:05
  • Elizabeth Arden Launches Two Green Tea Strawberry Basil Products for Spring and Summer
    Elizabeth Arden Launches Two Green Tea Strawberry Basil Products for Spring and Summer Beauty brand Elizabeth Arden said Tuesday it is introducing two new products aimed at spring and summer: Green Tea Strawberry Basil Eau de Toilette and Green Tea Strawberry Basil Honey Drops Body Cream. The eau de toilette opens with wild strawberry, adds basil, moves into a woody birch note and finishes with the brand’s signature green tea scent. The fragrance was created by Rodrigo Flores-Roux, a senior perfumer and vice president at Givaudan. “To add a natural, lively feel to green tea’s freshness, I layered strawberry and basil with a herb garden accord,” he said. The matching body cream features added cocoa butter. Elizabeth Arden said it uses a less-sticky formula with green tea and Honey Drops ingredients and applies Givaudan’s MoodScentz fragrance technology. The company said the cream provides moisturizing benefits for up to 24 hours. Amber Garrison, president of Elizabeth Arden’s fragrance division, said offering the eau de toilette and body cream together is intended to help consumers experience the scent in a more layered way. Elizabeth Arden traces its roots to 1910, when founder Elizabeth Arden opened the Red Door salon on Fifth Avenue in New York. The founder is also known for promoting sun protection, yoga and adequate hydration beginning in the 1920s. * This article has been translated by AI. 2026-05-06 17:20:40
  • Coupang Posts 12.46 Trillion Won in Q1 Revenue but Swings to Operating Loss
    Coupang Posts 12.46 Trillion Won in Q1 Revenue but Swings to Operating Loss Coupang posted 12 trillion won in first-quarter revenue but swung to an operating loss of about 350 billion won, weighed down by costs tied to a personal data breach and inefficiencies in its logistics network. Coupang Inc. Chairman Kim Beom-seok said Wow, the company’s paid membership service, is rebounding after last year’s breach but will take time to fully normalize. Coupang Inc. said on the 6th (Korea time) that first-quarter revenue rose 8% from a year earlier to 12.4597 trillion won, from 11.4876 trillion won. It reported an operating loss of 354.5 billion won, its largest in 4 years and 3 months. Net loss totaled 389.7 billion won. On a conference call, Kim said product commerce revenue growth hit its low point in January, then improved each month year over year, with the pace of improvement accelerating in February and March. He said most existing customers and Wow members did not leave after the breach and continued to increase spending. As of the end of last month, he said, rejoining by former members and growth in new sign-ups restored about 80% of the Wow membership decline after the incident. A key driver of the loss was the purchase credits issued to customers affected by the data breach. In January, Coupang provided 50,000 won in purchase credits to each of 33.7 million affected customers, for a total cost of 1.685 trillion won. Kim said the credits were a one-time item, with most of the impact limited to the first quarter, though some effects were expected to continue into early in the second quarter. Kim also cited logistics-network inefficiencies. Coupang has expanded facilities and adjusted supply-chain planning to match predictable demand patterns, but the external shock from the breach left actual demand below planned levels, creating idle capacity and inventory costs, he said. Kim said efforts continue beyond recovery to strengthen the business. He said the company is introducing automation and artificial intelligence across logistics and delivery networks to raise service levels while cutting costs, which he said should help improve customer experience and expand margins over time. Among overseas operations, Kim pointed to Taiwan as a key growth engine. He said Coupang’s in-house last-mile network that guarantees next-day delivery now covers most volume in Taiwan and continues to expand. He said providing the full Rocket Delivery service lineup in Taiwan remains at an early stage, but customer response has been strong, and the company will focus this year on building a top-tier customer experience and a foundation for long-term growth there. The conference call also addressed the issue of Korea’s designation of Coupang’s “same person,” a label used to identify a controlling owner. CFO Gaurav Anand said the company is aware of the designation in Korea and is reviewing it closely, adding that Coupang is committed to complying with regulatory requirements in every market where it operates. The Korea Fair Trade Commission recently changed Coupang’s designated controlling owner from the corporation to Kim personally. The change increases scrutiny of governance-related rules and subjects the company to regulations on unfair private benefits. Coupang has said Kim meets conditions for an exception and plans to contest the designation through an objection and an administrative lawsuit. 2026-05-06 15:57:28
  • BBQ Sales Jump 34% in Seoul Tourist Districts as Foreign Visitors Boost K-Chicken Demand
    BBQ Sales Jump 34% in Seoul Tourist Districts as Foreign Visitors Boost K-Chicken Demand As more foreign tourists visit South Korea, demand for Korean-style fried chicken is helping boost sales for major chains. Genesis BBQ Group, which operates the BBQ chicken franchise, said Tuesday that it posted sales growth in key Seoul commercial districts that draw large numbers of overseas visitors. The company said cumulative first-quarter sales this year in major areas such as Myeongdong and Hongdae rose 34.4% from a year earlier. By district, Hongdae sales climbed 61.8%, the fastest growth, while Myeongdong sales increased 25.8%. Sales also rose in other tourist-heavy areas including Seongsu, Gangnam and Jamsil. BBQ said the expansion of larger stores of 30 to 40 pyeong or more in major districts contributed to the increase, and it also cited a recent rise in tourist traffic to Seoul’s main shopping areas. The Ministry of Culture, Sports and Tourism said 4.76 million foreign visitors entered South Korea in the first quarter, up 23% from the same period last year. In a 2025 global survey on Korean food consumption released by the Ministry of Agriculture, Food and Rural Affairs and the Korean Food Promotion Institute, “Korean-style fried chicken” ranked as the most preferred Korean dish among overseas consumers. “We will continue to strengthen our space and menu competitiveness, focusing on core districts with strong access to global customers,” a BBQ official said. BBQ is also expanding overseas. The company operates about 700 stores in 57 countries, including the United States, Europe, China and Southeast Asia. In March, it opened a store in China’s Hunan province as part of a push into inland markets in central China. * This article has been translated by AI. 2026-05-06 15:22:44
  • Coupang Chairman Kim Bum-seok Says Data Breach Recovery Will Take Time
    Coupang Chairman Kim Bum-seok Says Data Breach Recovery Will Take Time Coupang founder and Coupang Inc. Chairman Kim Bum-seok said the company will need time for a full recovery from last year’s personal data breach, though the impact from customer departures has eased. He said compensation costs and temporary inefficiencies in the logistics network weighed on first-quarter results. Speaking on a first-quarter earnings conference call held on May 6 (Korea time), Kim said product commerce revenue growth hit its low point in January, then improved each month year over year, with the pace of improvement accelerating in February and March. Coupang Inc. reported first-quarter revenue of 12.4597 trillion won, up 8% from 11.4876 trillion won a year earlier. It posted an operating loss of 354.5 billion won, about 52% of its 2025 full-year operating profit of 679.0 billion won. It was the first time Coupang’s quarterly revenue growth fell to a single-digit rate. Kim cited compensation tied to the data breach and temporary logistics inefficiencies as key drivers of the operating loss. In January, Coupang issued purchase vouchers worth 50,000 won per person to 33.7 million people in connection with the breach, for a total cost of 1.6850 trillion won. Kim said Coupang’s facility expansion and supply-chain planning are adjusted to demand trends based on predictable customer patterns. When external factors such as the data breach disrupt those patterns, he said, actual demand can fall short of planned demand, leaving the company to carry idle capacity and inventory costs during that period. Still, Kim said the recovery trend is continuing. “It will take time for year-over-year growth rates to fully reflect a fundamental recovery,” he said, adding that the January-to-March revenue growth trend is running ahead of past trends and that year-over-year comparisons will keep improving through the year. Kim said the company will continue to expand. “Beyond recovery, efforts to build the business are continuing,” he said, adding that automation and artificial intelligence across services, including logistics and delivery networks, are improving service levels while reducing costs. He said the changes are expected to contribute significantly to better customer experience and wider margins.* This article has been translated by AI. 2026-05-06 09:09:15
  • Coupang Posts 2nd Straight Quarterly Revenue Dip; Q1 Operating Loss Tops 350 Billion Won
    Coupang Posts 2nd Straight Quarterly Revenue Dip; Q1 Operating Loss Tops 350 Billion Won Coupang Inc., the parent of South Korean e-commerce company Coupang, posted an operating loss of about 350 billion won in the first quarter, its largest in about four years and three months since 2021. Revenue rose from a year earlier, but growth slowed to its weakest pace since the company’s New York listing, and profitability swung back into the red. In a first-quarter consolidated filing submitted to the U.S. Securities and Exchange Commission on Tuesday (Korea time), Coupang reported revenue of $8.504 billion, up 8% from $7.908 billion a year earlier. Using the average won-dollar exchange rate of 1,465.16 won in the quarter, revenue was 12.4597 trillion won, up 8% from 11.4876 trillion won. However, quarterly revenue fell from the previous quarter for a second straight period, following 12.8103 trillion won in the fourth quarter of last year. The company’s first-quarter revenue growth rate was 8% on a constant-currency basis, the lowest since Coupang listed on the New York Stock Exchange in 2021. It was also the first time the quarterly growth rate fell to a single digit; the previous low was 14% in the fourth quarter of last year. Coupang reported an operating loss of $242 million (354.5 billion won), reversing a year-earlier operating profit of $154 million (233.7 billion won). The operating loss was about 52% of the company’s full-year operating profit last year of 679.0 billion won. Net loss was $266 million (389.7 billion won), compared with net profit of $114 million (165.6 billion won) a year earlier. The results also missed market expectations. Bloomberg’s consensus forecast called for revenue of $8.511 billion, an operating loss of $39.27 million and a net loss of about $100 million. Some foreign media had projected revenue of about $8.6 billion and an operating loss of roughly $44.94 million. With the operating loss coming in about five to six times larger than forecasts, Coupang shares weakened in after-hours trading in New York immediately after the earnings release. As of 5:10 a.m., the stock was down about 3% to 4% in after-hours trading from the regular-session close.* This article has been translated by AI. 2026-05-06 06:36:19