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Tag: Hanwha Group

  • Hanwha Group Mulls Sale Of Fg Korea, Operator Of Five Guys Franchise In South Korea

    Hanwha Group Mulls Sale Of Fg Korea, Operator Of Five Guys Franchise In South Korea

    The South Korea-based conglomerate, Hanwha Group, is reported to be contemplating the sale of FG Korea, the operator of the American burger franchise Five Guys in South Korea.

    FG Korea and Hanwha Group

    FG Korea functions as a fully-owned subsidiary of Hanwha Galleria, which is the retail division of Hanwha Group. The company recently disseminated documents to private equity firms via a local accounting firm, Samil PwC. This action is seen as an indicator of a possible sale. It is anticipated that if a sale does occur, it would likely result in the complete transfer of ownership of the company.

    FG Korea’s Expansion

    FG Korea was instrumental in introducing Five Guys to the South Korean market in 2023, with the inaugural restaurant opening in the Gangnam district of Seoul. Since then, the chain has grown to include seven branches, with plans for an eighth location to open later this month in Yongsan, central Seoul.

    In the previous year, FG Korea had entered into an agreement with Five Guys International to spearhead the brand’s expansion into Japan, with an ambitious goal of establishing more than 20 outlets within the span of seven years.

    FG Korea’s Financial Performance

    In the past fiscal year, FG Korea reported significant sales of 46.5 billion won (approximately US$33.4 million) and a net income of 2 billion won.

    This potential sale is understood to be part of Hanwha Galleria’s attempts to optimize its portfolio and reduce expenses.

    Questions & Answers

    What is the relationship between FG Korea and Hanwha Group?
    FG Korea is a wholly-owned subsidiary of Hanwha Galleria, which is the retail branch of Hanwha Group.

    What has been FG Korea’s role in the expansion of Five Guys?
    FG Korea brought Five Guys to South Korea in 2023 and has since helped the brand grow to seven locations. Furthermore, they have also signed a memorandum of understanding with Five Guys International to lead the brand’s expansion into Japan.

    What is the financial performance of FG Korea in the past fiscal year?
    FG Korea reported 46.5 billion won (approximately US$33.4 million) in sales and a net income of 2 billion won in the last fiscal year.

  • Galleria Duty Free 63 opens in Seoul

    Galleria Duty Free 63 opens in Seoul

    Galleria Duty Free 63 has been officially opened – and it’s offering more than just duty free products.

    The new duty free store, located in Seoul’s iconic 63 Building, is operated by Hanwha Galleria, a subsidiary of Hanwha Group. Since its ‘Free Opening’ last December, the store has recorded daily average revenue of between 600 million and 700 million won, which the company expects to reach to 1 billion won (US$880,000) in the third quarter of this year.

    But what is most intriguing about the latest duty free branch is its 63 Building-based tourism content that visiting shoppers can take advantage of.

    The 63 Building, also owned by Hanwha Group, houses an observation deck overlooking the capital, and 63 Sea World, an aquarium that was recently renovated and renamed to AquaPlanet 63. Galleria Duty Free 63 has incorporated the building’s touristic elements and started operating tourism packages for its shoppers at the beginning of July.

    Hanwha Galleria also joined hands with Chinese conglomerate Wanda Group to establish a new marketing partnership. Wanda Group currently has some 120 million subscribers in China, and it will be joining Hanwha Galleria’s marketing campaigns to reshape the store into the next big tourist attraction for Chinese vacationers in Seoul.

    “Although the distribution industry has seen better times, we expect Hanwha Galleria to contribute to the Korea tourism industry with its distinctive duty free enterprise,” said Kim Seung-youn, CEO of Hanwha Group, who visited the store on Thursday.

    The new store currently features 540 brands, from luxury labels like Gucci, Coach, and Michael Kors, to brands that are exclusive to Galleria Duty Free 63, such as Stefano Ricci and Golden Goose. More brands including Chanel Cosmetics and Bottega Veneta will be joining the branch in coming months.

     

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