BGF Shifts HelloNature to B2B Business... Ends Dawn Delivery Service

[Asia Economy Reporter Lim Chunhan] BGF announced on the 15th that it has incorporated HelloNature as a subsidiary of BGF Networks and plans to transition to a B2B business.

BGF Networks held a board meeting on the same day and gave final approval for the acquisition of 100% of HelloNature's shares. HelloNature's shares are currently held 50.1% by BGF and 49.9% by 11st. Through this, HelloNature will cease its dawn delivery business, which was its main focus, and adjust its business areas by utilizing its existing capabilities to source and supply premium fresh food, develop differentiated products, and engage in online channel partnership sales.

BGF judged that due to the high-cost structure characteristic of dawn delivery, securing profitability is difficult, and with the recent rise in logistics costs, the market outlook is bleak. In particular, as competition intensifies with not only existing e-commerce companies but also large retail companies entering the market, BGF decided to swiftly transition its business in line with the post-COVID-19 era.

BGF Networks is one of BGF's affiliates, specializing in digital marketing businesses such as CUpost parcel services, digital signage advertising, and mobile gift certificate operations. Its sales last year were approximately 79.1 billion KRW.

A BGF official stated, “It is more important than anything to proactively pursue changes in the business portfolio according to market conditions to strengthen the group's new growth foundation and discover new competitive advantages. We will continue to achieve solid growth to actively respond to new consumption paradigms and to realize customer satisfaction, market leadership, and shareholder value.”