Yuseokjin Team Year 2, Kolon FnC Organization Restructuring Begins

Organizational Restructuring to Enhance Efficiency and Independence by Brand
Reorganization into 2 Headquarters, 8 Business Departments, and 15 Business Divisions

[Asia Economy Reporter Lim Hye-seon] Yuseok Jin, CEO of Kolon Industries FnC Division (Kolon FnC), who is in his second year, has embarked on a new restructuring. While last year focused on efficiency through a strategy of selection and concentration, this year the focus is on strengthening the competitiveness of growth businesses.

On the 6th, Kolon FnC carried out an organizational restructuring for 2022, abolishing the headquarters system and transitioning to a business division system. The structure was reorganized from the existing 2 headquarters and 8 business divisions into 14 business divisions. This measure aims to simplify complex decision-making processes and strengthen the independence of each brand. The sales headquarters will also be abolished. Sales functions will be transferred to business divisions or brands, enabling all processes to be completed within each brand. The company explained, "We have laid the foundation so that brands can take responsible management in strategy planning, execution, and improvement."

To strengthen ethical awareness and social responsibility management, a ‘CSO (Chief Sustainability Officer) Division’ was newly established. Han Kyung-ae, former executive director who created the upcycling fashion brands RAEKODE and EPigram, was appointed as the first CSO and will oversee related brands under this division to separately conduct upcycling-related businesses.

Kolon FnC is expected to recover sales of 1 trillion KRW this year and escape the deficit trap. Last year, Kolon FnC recorded sales of 868 billion KRW and a loss of 10.7 billion KRW. Cumulative sales up to the third quarter this year reached 656 billion KRW, a 12.8% increase compared to the same period last year. Operating profit turned positive at 15 billion KRW, compared to a 27.2 billion KRW loss in the same period last year. This is the effect of proactive brand portfolio improvement and launching competitive new brands. Early this year, CEO Yuseok Jin strengthened product capabilities by recruiting talented directors such as Executive Director Lee Ji-eun (Cambridge Members) and Director Kim Su-jeong (G/FORE, Elrod). Inefficient brands such as the cosmetics brand LIKEWISE were also reorganized. The online sales ratio was raised from 20% in 2019 to about 25% in the first half of this year. It is expected to achieve a significant operating profit in the fourth quarter, the peak season for outdoor wear.

The company stated, "Golf wear brands led by G/FORE and WAC are showing high growth, and existing fashion brands such as Lucky Chouette, Couronne, Series, and Customellow are also making progress," adding, "By improving brand quality and strengthening business structure, this year will be the first year to fully enter a growth trajectory."