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Coupang Acquired for 55 Billion KRW and Subsidiarized
Synergies Expected with Convenience Stores and Supermarkets... Targeting MZ Generation
Mesh Korea and Yogiyo Acquired and Invested for 550 Billion KRW
Securing Future Growth Engines

[Asia Economy reporters Jo In-kyung and Lim Chun-han] GS Retail is increasing investments in distribution, logistics, and food companies as part of its post-COVID-19 strategy. Following investments in 12 companies last year, including Yogiyo and AboutPet, GS Retail has acquired Cookat this year, making a total direct investment of 550 billion KRW to actively secure future growth engines.

◆Targeting the MZ Generation with Cookat Acquisition = On the 13th, GS Retail acquired the food startup ‘Cookat’ for 55 billion KRW. GS Retail plans to incorporate Cookat as a subsidiary, with the current CEO, Moonju Lee, continuing to lead the company.

Founded in 2014, Cookat is a food tech startup operating the food information community ‘What to Eat Today’ and the recipe video channel ‘Cookat,’ growing to sales of 39 billion KRW in 2020. In April last year, it launched the online platform ‘Cookat Market’ selling private brand (PB) products, offering over 220 items.

GS Retail expects Cookat Market to generate broad synergies with convenience store GS25, supermarket GS The Fresh, and home shopping GS Shop. GS Retail plans to implement ▲ opening GS25-Cookat Market flagship stores ▲ expanding product categories beyond frozen goods ▲ planning and launching products optimized for the MZ generation (Millennials + Generation Z) ▲ joint research and development (R&D) and marketing activities. In the quick commerce sector, GS The Fresh’s micro-fulfillment center (MFC) will expand frozen product storage capabilities, and simultaneous sales synergies will be built through Yogiyo and Cookat Market. In e-commerce, GS Retail will expand product categories based on its sourcing capabilities and jointly operate existing online businesses and fulfillment centers.

Last year, GS25 and GS The Fresh introduced Cookat’s representative PB product, Strawberry Ssok Chapssal Tteok (glutinous rice cake), which ranked first in the frozen dessert category and gained great popularity. Synergy effects are also expected through product sales via Yogiyo, the delivery company acquired by GS Retail. Lee Sung-hwa, Executive Director of GS Retail’s New Business Division, said, "This acquisition will serve as an opportunity to bring 33 million global MZ generation customers to GS Retail’s more than 16,000 offline platforms."

◆550 billion KRW Investment in 13 Companies = Since the integration with GS Home Shopping last year, GS Retail has shown aggressive moves through successive equity acquisitions and new investments. In April last year, it invested 50.8 billion KRW to acquire a 19.53% stake in Mesh Korea, and in July, it acquired the pet commerce platform Pet Friends together with private equity firm IMM PE. In August, GS Retail invested 300 billion KRW to acquire Yogiyo alongside private equity firm Affinity Equity Partners. In December, it invested 65 billion KRW in Kakao Mobility, securing a 1.3% stake. Additionally, GS Retail invested 2 billion KRW in logistics startup Team Fresh, 4 billion KRW in AI robotics software developer Cimes, and 1 billion KRW in video-specialized startup Yocus.

GS Retail’s bold investments are aimed at surviving the intensified competition in the distribution market. Especially as the e-commerce market has rapidly grown due to the prolonged COVID-19 pandemic, the space for traditional offline-based distributors is shrinking. GS Retail’s strategy focuses on linking online and offline businesses and strengthening quick commerce. Through this, it aims to secure future growth engines while actively nurturing new businesses such as pet care and food, enhancing synergies with existing core businesses.