Kyochon, "Decision to Adopt Professional Management System for a Better Future... Will Actively Pursue New Product Development and Overseas Expansion"

Sharing Achievements Ahead of KOSPI Listing on the 12th of Next Month
"Expecting to Double Revenue Growth by 2025"
Developing Craft Beer Brand... Increasing Number of Medium to Large Stores

So Jin-se, Chairman of Kyochon F&B, is speaking about the achievements Kyochon has made so far and its future plans at an online press conference held on the 22nd.

[Asia Economy Reporter Choi Saeng-hye] "Founder Chairman Kwon Won-gang resigned from all registered executive positions despite being a major shareholder to ensure management transparency and future growth, and introduced a professional management system. Now, Kyochon will actively move forward to become the global number one company by achieving an annual operating profit of 100 billion KRW by 2025 through new growth engines."

Kyochon F&B, which operates Kyochon Chicken, shared its achievements and future plans ahead of its direct listing on the KOSPI market scheduled for the 12th of next month. Chairman So Jin-se expressed his aspirations at the 'IPO Online Press Conference' held on the 22nd at the 6th-floor conference room of Conrad Hotel in Yeouido, stating, "We will move toward a better future through the listing."

The event was attended by Chairman So Jin-se, CEO Hwang Hak-soo, and other executives and employees. CEO Hwang shared the current business status of Kyochon. As of August, Kyochon Chicken has 1,234 stores domestically, and Kyochon F&B recorded sales of 380.1 billion KRW and operating profit of 39.4 billion KRW last year. Kyochon F&B set a vision to double its scale by 2025. The number of domestic franchise stores will expand to over 1,500, with sales targeted at 770 billion KRW and operating profit at 100 billion KRW.

They also announced four major strategies for sustainable growth: ▲expansion of franchise business and development of stores tailored to commercial districts ▲new growth engines (expansion of processed food business including home meal replacements (HMR), diversification of sales channels, processed sauce business, pioneering new brand platforms such as craft beer, high value-added material business) ▲full-scale overseas market expansion ▲securing ultra-competitive research and development (R&D) capabilities.

In particular, Kyochon plans to focus on qualitative growth by increasing the proportion of medium to large-sized stores from 60% to 90%. They will also launch a brand combining chicken and beer. CEO Hwang explained, "We plan to develop and sell our own craft beer," adding that test marketing will begin at some franchise stores from November, with an independent brand launch planned by the first half of next year, focusing on franchise stores.

Additionally, they will expand the processed food business including HMR, and open their own platform ‘Kyochon Mall’ in the first half of next year to diversify sales channels. They will also enter the pet food and functional food material businesses.

Kyochon will also take a more proactive approach to overseas market entry. Currently operating 37 stores in six countries including China, the United States, and Malaysia, they plan to expand their network to 25 countries and 537 stores by newly entering markets such as the Middle East, Taiwan, Australia, and Turkey.

CEO Hwang emphasized, "However, we will ensure that there are no disadvantages to franchise stores due to the listing," and stated, "Franchise business is fundamentally based on mutual growth, so there will be no major changes to the policies we have basically pursued regarding franchise stores." He added, "I believe that by eliminating inefficiencies within the company through this opportunity, we can maximize shareholder value."

Meanwhile, Kyochon F&B plans to issue 5.8 million new shares through the public offering. The expected price range is 10,600 KRW to 12,300 KRW per share, with a total offering amount between 61.48 billion KRW and 71.34 billion KRW. After demand forecasting on the 28th and 29th, the offering price will be finalized, followed by subscription from the 3rd to the 4th of next month. The company is scheduled to be listed on the KOSPI market in November, with Mirae Asset Daewoo as the lead underwriter.

This content was produced with the assistance of AI translation services.