Hurim Networks Invests 20 Billion KRW in Saipan Golf Resort... "Expanding Travel Business"

[Asia Economy Reporter Jang Hyowon] Hurim Networks announced on the 5th through a public disclosure that it has decided to invest 20 billion KRW in the ‘Laolao Golf & Resort Private Equity Partnership’. Hurim Networks’ investment funds will be used to acquire ‘Saipan Laulau Development, Inc’, which operates the Saipan ‘Laolao Golf & Resort’.

Hurim Networks plans to directly operate Laolao Golf & Resort by entrusting the operational tasks in consultation with the fund management company. Based on its accumulated travel business experience and know-how, Hurim Networks intends to highlight the strengths of Laolao Golf & Resort through various product planning, sales, marketing, and promotion.

Until now, Hurim Networks’ travel business division’s main revenue structure was duty-free business targeting Chinese travelers visiting Korea. Operating Laolao Golf & Resort will not only expand the target customers to travelers worldwide but also broaden the business scope to include golf course and resort operations, which the company explains will enable performance improvement in the travel business division.

A Hurim Networks official stated, “Considering external conditions such as the recent acceleration of COVID-19 spread in China, we judged that it was necessary to move away from the existing business environment that relied solely on China, leading to this investment decision.” He added, “We expect that this investment will enable not only the expansion of the travel business division but also stable business operations.”

He continued, “During the pre-investment review stage, we completed inspections related to the resort, including environmental improvements, and finalized reviews on sales improvement plans with partners and affiliated companies.” He added, “The final acquisition of Laolao Golf & Resort is only pending approval procedures from the Saipan authorities, and we expect no particular issues in completing the acquisition process.”

Saipan Laolao Golf & Resort, opened in 2009, is a resort-style golf course known for its golf tour course based on the South Pacific beach and the excellent natural environment of Laolao Bay. Since it is a U.S. territory allowing visa-free stay for 45 days, securing users is easy, and it is expected to create synergy with Hurim Networks’ management capabilities.