Lotte Homeshopping’s massive entertainment expenses raise questions

[THE INVESTOR] Lotte Homeshopping racked up 6.2 billion won (US$ 5.3 million) entertainment expenses in 2014 and 2015, data showed on July 6.According to Chaebul.com’s analysis of Lotte Group’s consolidated financial statements for the 2008-2015 period, Lotte Homeshopping spent 13.9 billion won in entertainment expenses during the period. More than half of that was spent since the launch of the Park Geun-hye administration. The figure for 2013 to 2015 came to 8 billion won. Chaebul.com is a webs

July 6, 2016

Franchisees sue Pizza Hut for unfair business practice

[THE INVESTOR] Angry Pizza Hut franchisees have once again sued the company for its unfair practice of collecting marketing and management fees outside of the contract, local news reported on July 5. The 25 owners of Pizza Hut outlets filed a suit with the Seoul Central District Court, demanding the global pizza house’s Korean unit pays back the amount it collected under “admin fee,” totaling around 760 million won (US$ 658,015). The owners claim that the company made them pay an additional 0.55

July 5, 2016

Samlip GFS sales more than triple in 2 years

[THE INVESTOR] Samlip GFS, an affiliate of Korean food giant Samlip General Foods, said on July 5 that its sales have been more than tripled in two years. According to the firm specialized in food distribution and logistics, its revenue surged 315 percent to 553.1 billion won (US$478.7 million) last year from 133 billion won in 2014 when the company was established. Its first-quarter sales grew 35 percent year-on-year to 167 billion won this year. Samlip GFS was spun off from Samlip General Food

July 5, 2016

CJ Foodville seeks to become next McDonald’s, Starbucks

[THE INVESTOR] CJ Foodville, a food services company under Korean conglomerate CJ Group, will step up its global expansion led by its bibimbab-themed restaurant Bibigo, bakery Tous Les Jours and Twosome Cafe, the head of the company said Monday. “Our goal is to become a top 10 global food services company, beating McDonald’s and Starbucks,” Jung Moon-mok, CEO of CJ Foodville said at a press conference for the opening of its restaurant complex CJ FoodWorld inside the COEX Mall in southern Seoul. 

July 4, 2016

Hera opens first store in Beijing

[The INVESTOR] South Korea’s leading cosmetics brand Hera opened its first store in China on July 1, its parent company AmorePacific said on July 4. The first store opened at an upscale department store Shin Kong Place in Beijing, with the second one to follow at Hanguang Department Store in the same city on July 28. Hera, which was launched in 1995, has become one of the most popular cosmetics brands in South Korea and other Asian countries, especially in China. Hera’s first store in Beijing /

July 4, 2016

Lotte World Mall accused of design plagiarism

[THE INVESTOR] A local design firm has publicly accused the Lotte World Mall in Seoul for ripping off its design for their building on July 1. Local design house 2CM claims that the exterior design of the main entrance to the mall’s luxury stores Avenuel bears a close resemblance to their design concept called “Star Collection,” which was also published in a booklet by Architecture@Work, an international trade fair showcasing architectural designs and supplies. Lotte World Mall / The Investor“Th

July 1, 2016

Outdoor apparel brands exit the market

[THE INVESTOR] Many outdoor gear and apparel brands are closing down their business in response to the sliding domestic sales in the already-saturated outdoor market. Fashion Group Hyungji recently decided to withdraw its outdoor apparel brand Northcape after five years in business. According to industry insiders, Hyungji has already notified its 70 franchise owners across the country. Actress Ha Ji-won and actor Ji Chang-wook model for NorthcapeIn 2011, Hyungji clinched a deal to exclusively se

June 30, 2016

Naver Pay outguns rivals in mobile payment race

[THE INVESTOR] Internet giant Naver’s online payment solution Naver Pay has been outpacing its competitors, such as Kakao Pay and Samsung Pay, in the digital payment sector with its transaction volumes and number of subscribers growing at a faster pace.The Internet giant said that the number of cumulative transactions of Naver Pay has exceeded 180 million since the launch of the mobile payment solution a year ago while the total amount of payments stood at 2.5 trillion won ($2.2 billion). The co

June 29, 2016

Pernod Ricard Korea seeks major workforce reshuffle

[THE INVESTOR] Pernod Ricard Korea is conducting a voluntary redundancy program that could reshuffle its workforce by up to 15 percent, industry sources said on June 29. The company is offering voluntary redundancy program for all employees in mid-level management and higher positions, as it seeks to streamline itself in the face of deteriorating performance. Pernod Ricard Korea has been suffering from slipping market share for some years. The company’s share of the Korean whisky market dropped

June 29, 2016