Gyeonggi-do Corporation Declares Turn to Profit by 2025 Through Innovation Reform

Saving 230 Million KRW in Operating Expenses Through Organizational Restructuring and Business Reorganization
Reducing 190 Million KRW in Office Rental Fees and Sales Management Expenses

Gyeonggi Province Corporation announced at the Gyeonggi Provincial Assembly Standing Committee briefing held on the 14th that it aims to turn a profit this year through innovation and reform.

Gyeonggi-do Corporation BI. Provided by Gyeonggi-do Corporation

According to Gyeonggi Province Corporation on the 17th, the corporation plans to save 230 million KRW in operating expenses through organizational restructuring and business reorganization. To streamline the organization, it reduced the number of executives while securing business personnel. Additionally, it plans to accelerate its projects by reallocating personnel to solar power, support for sanitary products for female adolescents, and the operation of the climate action opportunity income platform.

Furthermore, it will reduce office space and cut corporate vehicle expenses and executives' business promotion costs. Through this, it expects to save 130 million KRW in office rental fees, 19 million KRW in vehicle maintenance costs, and 42 million KRW in business promotion expenses.

Along with this, since most of Gyeonggi Province Corporation's current projects are consignment projects, it plans to expand the proportion of its own projects to secure profitability. In particular, this year it will promote the support project for activating online purchases of sanitary products for female adolescents as an in-house project.

Currently, Gyeonggi Province provides vouchers for purchasing sanitary products to female adolescents in the province, and the corporation plans to build a platform to enable the use of these vouchers online, improving profitability through platform fees. Gyeonggi Province Corporation expects the net profit from this related in-house project to be 200 million KRW this year (assuming a 20% online voucher usage rate by 2025).

Through this, the corporation is determined to take the first step toward improving its structure and establishing a self-reliant management system. In addition, it plans to establish the institution's revenue model and achieve a turnaround to profitability through business diversification by expanding its own Smart Store sales operations and delivery service advertising sales.

Moreover, as part of the strategy to expand and advance the Delivery Service promotion, it will strengthen the competitiveness of Delivery Service by actively introducing a franchise management system and expanding win-win marketing operations in cooperation with merchant organizations.

Lee Jae-jun, CEO of Gyeonggi Province Corporation, stated, “We prioritized organizational restructuring and reductions in office rental fees and sales management expenses for the development of Gyeonggi Province Corporation,” and promised, “We will do our best to make 2025 the turning point for Gyeonggi Province Corporation’s profitability through the promotion of various in-house projects, led by the sanitary products project for female adolescents.”

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